Boeing announced sweeping cost cuts on Monday, including a hiring freeze, a pause on nonessential staff travel and a reduction on supplier spending to preserve cash as it deals with a strike of more than 30,000 factory workers.
Boeing factory workers, mostly in the Seattle area, started walking off the job early Friday after overwhelmingly rejecting a tentative labor deal, halting most of Boeing’s aircraft production.
It was the first clear sign of how the strike will affect the hundreds of suppliers that rely on Boeing work.
The financial impact of the strike will depend on how long it lasts, but Boeing is focused on conserving cash, West said at a Morgan Stanley conference Friday.
On Friday, Moody’s put all of Boeing’s credit ratings on review for a downgrade and Fitch Ratings said a prolonged strike could put Boeing at risk of a downgrade.
Persons:
Brian West, ” West, West, Morgan Stanley, Kelly Ortberg, Moody’s
Organizations:
Boeing, Morgan, Fitch
Locations:
Seattle