Boeing is furloughing tens of thousands of workers amid a major machinist strike.
Last week, 96% of the 33,000 Boeing machinists voted to reject a new contract and instead strike. Though negotiations have continued, the union is still unsatisfied with the new offers. In response, Boeing announced the furloughing of tens of thousands of employees.
“With production paused across many key programs in the Pacific Northwest, our business faces substantial challenges and it is important that we take difficult steps to preserve cash and ensure that Boeing is able to successfully recover,” Boeing CEO Kelly Ortberg said in a message to employees on Wednesday, the New York Times reported.
“While this is a tough decision that impacts everybody, it is in an effort to preserve our long-term future and help us navigate through this very difficult time,” he continued, adding that the company will “do all we can to limit this hardship.”
Furloughed employees will continue to receive benefits, with the furloughs being cyclical for some — on a rotating basis, workers will take off one week for every four. Ortberg said that furloughs would affect “a large number of U.S.-based executives, managers, and employees.”
Boeing announced a slew of other cost-cutting measures on Monday, including a freeze on hiring, a limiting of travel, and major spending cuts.
The machinist strike is the first Boeing strike in 16 years. The last strike lasted 50 days.
“This is about fighting for our future,” International Association of Machinists union local chapter President Jon Holden said as he announced the vote results last week. “We will be back at the table whenever we can get there to drive forward on the issues our members say are important.”
Boeing boasts 150,000 employees across the United States, with most being based in Washington.
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