Boeing Furloughs Thousands as Strike Drains Company Coffers

Boeing is facing turbulence on the ground. The aerospace giant announced Wednesday that it will temporarily furlough thousands of U.S. executives, managers, and staff due to the ongoing machinist strike, a drastic measure aimed at preserving cash. CEO Kelly Ortberg told employees that the furloughs, which will impact tens of thousands of workers, are essential as the company wrestles with the financial strain caused by the labor stoppage.

This move comes on the heels of a significant strike by more than 30,000 machinists in Boeing’s Seattle and Oregon operations. After overwhelmingly rejecting a new labor contract—96% of workers voted to strike—the machinists walked off the job just after midnight on Friday, throwing production into chaos.

For Boeing, the strike could not have come at a worse time. With supply chain bottlenecks already squeezing the aerospace industry and rising inflation eroding margins, the strike has intensified pressure on the company to manage costs and cash flow. The machinists, who are critical to the production of Boeing’s commercial aircraft, have effectively brought manufacturing to a halt, complicating the company’s ability to meet its delivery timelines.

“This furlough decision was not made lightly, but it’s necessary for us to manage through this challenging period. We remain committed to resolving this strike as quickly as possible, but in the meantime, we must take steps to ensure our financial stability.”

Ortberg said in his message to employees.

Industry analysts believe Boeing is in a tough spot, balancing worker demands for better wages and conditions against the need to maintain profitability in a challenging business environment. As Boeing scrambles to find a resolution with the machinists’ union, the temporary furloughs signal just how serious the financial impact of the strike has become.

For now, Boeing’s leadership must navigate through a storm of labor unrest, with tens of thousands of employees waiting anxiously to see when they’ll return to work.