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:

Due to an ongoing machinist strike, Boeing has implemented a hiring freeze, is considering furloughs, and is undertaking significant cost-cutting measures.
The strike is projected to cause a $3.5 billion cash loss for Boeing in the third quarter, potentially reducing its cash balances to near minimum levels.
Several airlines, including Southwest, United, and Alaska Airlines, are expected to face delayed aircraft deliveries as a consequence of the production disruption.

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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.