September 18 – Boeing (NYSE: BA) CEO Kelly Ortberg announced Wednesday that the aerospace company will temporarily furlough a significant number of U.S.-based executives, managers, and employees in response to a machinists’ strike that has halted production of its 737 MAX and other airplanes. The strike, which began Friday, involves around 30,000 machinists and has severely impacted the company’s operations.
“We are initiating temporary furloughs over the coming days that will impact a large number of U.S.-based executives, managers, and employees,” Ortberg stated. The planemaker intends for selected employees to take one week of furlough every four weeks on a rolling basis as long as the strike continues.
Ortberg also confirmed that he and other Boeing leaders would take a pay reduction proportional to the length of the strike, signaling a unified approach as the company navigates the production stoppage.
The strike is a significant disruption for Boeing as it faces delays in meeting production targets, especially for the 737 MAX, a critical model for the company’s revenue. Negotiations between the machinists’ union and Boeing management are ongoing, but there is no indication of an immediate resolution.