Boeing CEO Kelly Ortberg stated that all benefits will continue for furloughed employees. [Credit: Shutterstock]
Key Takeaways:
Boeing is implementing temporary furloughs for a large number of U.S.-based executives, managers, and employees, with affected staff taking one week of furlough every four weeks while maintaining benefits.
These furloughs, along with a hiring freeze, are a direct response to the ongoing strike by over 30,000 IAM workers who rejected a new contract, causing production pauses and projected financial losses of $3.5 billion.
To help preserve cash and demonstrate solidarity, CEO Kelly Ortberg and his leadership team will also take pay cuts for the duration of the strike.
Two days after announcing a hiring freeze, Boeing has notified employees it will be moving forward with furloughs over the coming days.
This comes after over 30,000 workers with the International Association of Machinists and Aerospace Workers (IAM) rejected a contract renewal with the company and went on strike last week.
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Caleb Revill is a journalist, writer and lifelong learner working as a Junior Writer for Firecrown. When he isn't tackling breaking news, Caleb is on the lookout for fascinating feature stories.
