The Boeing Company unveiled on Monday it is instituting a hiring freeze and considering temporary furloughs as a part of cost-cutting efforts after some employees went on strike, according to a memo to employees from Chief Financial Officer Brian West.
"Our business is in a difficult period. This strike jeopardizes our recovery in a significant way and we must take necessary actions to preserve cash and safeguard our shared future," West added. The measures include a pause on nonessential staff travel and a reduction in supplier spending, the withdrawal from airshows and trade events, and the pause of purchases from suppliers for 737, 767, and 777.
Later last week, the company's shares fell over 4% after roughly 33,000 machinists walked off the job demanding better wages and an end to the aerospace giant's "violation" of safety standards.
