Boeing Freezes Hiring, Considers Furloughs as Strike Could Cost $3.5 Billion

Report indicates Boeing strike hits 737 deliveries most in the third quarter.

Caleb Revill

Monday, September 16, 2024 at 01:33 PM ET

Verified

Edited By:

Travis Tingle

Boeing 737 Max aircraft in storage. [Credit: AirlineGeeeks/William Derrickson]

Key Takeaways:

Boeing is facing significant financial losses, estimated at $3.5 billion for Q3, due to an ongoing machinist strike after workers rejected a new contract.
In response to the strike's impact, Boeing has initiated a company-wide hiring freeze, is considering temporary furloughs for many employees, and is implementing broad cost-cutting measures, including reductions in travel, capital expenditures, and supplier orders.
The strike is expected to cause delivery delays, primarily affecting airlines such as Southwest Airlines, Alaska Airlines, Ryanair, and United Airlines, though the near-term impact might be minimized as the U.S. vacation season concludes.

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Boeing has notified employees of a hiring freeze and is considering furloughs in the coming weeks as experts predict significant cash loss for the company this quarter due to an ongoing machinist strike.

Over 30,000 machinists and aerospace workers at the company walked off the job Friday after a large majority rejected a tentative contract. A Bloomberg Intelligence analysis predicted Monday that Boeing could be out $3.5 billion in cash in the third quarter if the strike continues through September.