Boeing CEO Kelly Ortberg stated that all benefits will continue for furloughed employees. [Credit: Shutterstock]
Key Takeaways:
Boeing is initiating temporary furloughs for a large number of U.S.-based employees, managers, and executives.
These furloughs are a direct response to a strike by over 30,000 IAM workers who rejected a contract, causing paused production and significant financial challenges for the company.
To preserve cash, affected employees will be furloughed one week every four weeks (with benefits continuing), and CEO Kelly Ortberg along with his leadership team will 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.
