Boeing freezes hiring amid strike to cut costs across the board | Real Time Headlines

boeing company Sweeping cost cuts were announced Monday, including a hiring freeze, a moratorium on non-essential employee travel and reductions in supplier spending to preserve cash. Dealing with strikes There are more than 30,000 factory workers.

Workers at Boeing plants, mostly in the Seattle area, went on strike early Friday after overwhelmingly rejecting a temporary labor deal that halted production of most of the company’s planes.

Chief Financial Officer Brian West said in a note to employees that the manufacturer will “significantly reduce” supplier spending and halt most purchases of its 737 Max, 767 and 777 jetliners Order. It’s the first clear sign of how the strike will affect the hundreds of suppliers that rely on Boeing’s work.

“We are working in good faith to reach a new contractual agreement that reflects their feedback and enables operations to resume,” West said in the report. “However, our business is going through a difficult period. This strike seriously jeopardizes As we recover, we must take the necessary actions to preserve cash and safeguard our collective future.”

The financial impact of the strike will depend on how long it lasts, but Boeing Focus on saving cashWest said at a Morgan Stanley conference on Friday. He said the company’s new CEO, Kelly Ortberghoping to immediately return to the negotiating table and reach a new agreement.

“We are also considering the difficult step of temporarily furloughing many of our employees, managers and executives over the coming weeks,” West said.

Moody’s put all of Boeing’s credit ratings on review for downgrades on Friday, and Fitch Ratings said a prolonged strike could put Boeing at risk of a downgrade. That could push up borrowing costs for already heavily indebted manufacturers.

Boeing burned about $8 billion in the first half of this year after a near-catastrophic door panel explosion at the beginning of the year slowed production.