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Boeing CEO says the company will begin furloughs soon to save cash during labor strike

Boeing’s CEO says the company will begin laying off a large number of employees to save cash during the strike by union machinists

The Associated Press
Wednesday 18 September 2024 12:29 EDT
Boeing Strike
Boeing Strike (Copyright 2024 The Associated Press. All rights reserved.)

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Boeing’s CEO said Wednesday that the company will begin furloughing “a large number” of employees to conserve cash during the strike by union machinists that began last week.

Chief Executive Kelly Ortberg said the layoffs would be temporary and affect executives, managers and other employees.

About 33,000 Boeing factory workers in the Pacific Northwest began a strike Friday after rejecting a proposal to raise pay by 25% over four years. They want raises of at least 40% and other improvements in the deal that they voted down.

The furloughs are expected to affect tens of thousands of Boeing employees. Ortberg said employees will be furloughed for one week every four weeks, and he and other senior executives will take pay cuts during the duration of the strike.

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