Boeing’s leadership has announced significant furloughs as the company seeks to conserve cash amidst a striking union workforce. The strike, involving approximately 33,000 machinists in the Pacific Northwest, commenced last week after workers rejected a proposal for a 25% salary increase over four years. The machinists are advocating for raises of at least 40%, alongside other improvements to their contract.
CEO Kelly Ortberg confirmed that the planned furloughs will impact a large number of employees, including executives and managers, though they are intended to be temporary. The restructuring will see employees taking one week of furlough every four weeks. In a show of solidarity, Ortberg stated that he and other senior executives will also be accepting pay cuts during the strike. The furloughs are projected to influence tens of thousands of Boeing’s workforce as the company navigates these challenging circumstances.
