Boeing has implemented cost-cutting measures, including a hiring freeze, a halt on nonessential staff travel, and reductions in supplier spending, as it faces a strike by over 30,000 factory workers, primarily in the Seattle area. These workers began striking after rejecting a proposed labor deal, halting most of Boeing’s aircraft production.

CFO Brian West announced that Boeing will make “significant reductions” to supplier spending and pause most purchase orders for its 737 Max, 767, and 777 models. The financial impact depends on the strike’s duration, and Boeing is focused on “conserving cash.” Temporary furloughs for employees and executives are also under consideration.

53450363008 46458d49db o
The Alaska Airlines door panel blow out incident kickstarted Boeing’s downward spiral in 2024.

The strike has raised concerns about Boeing’s financial stability. Moody’s and Fitch Ratings have both warned of potential credit downgrades if the strike is prolonged, which would increase borrowing costs for the company. Boeing already faces financial strain, having burned $8 billion earlier this year due to slowed production following a near-catastrophic incident.

New CEO Kelly Ortberg is eager to return to the bargaining table to resolve the labor dispute.