Boeing to Temporarily Furlough Tens of Thousands of Employees Amid Strike

Boeing announced plans to temporarily furlough tens of thousands of employees after approximately 30,000 machinists went on strike, halting the production of its 737 MAX and other airplanes. The strike, which began on Friday, has led to disruptions in Boeing’s operations.

In an email to employees, CEO Kelly Ortberg stated that furloughs would begin soon, impacting a large number of US-based executives, managers, and employees. Selected workers will take one week of furlough every four weeks for the strike’s duration. Boeing executives, including Ortberg, will also take pay reductions.

The company and the International Association of Machinists and Aerospace Workers resumed contract negotiations on Wednesday, but key disagreements over wages and pensions remain unresolved. The union is demanding a 40% raise over four years, compared to Boeing’s offer of 25%.

The strike, Boeing’s first since 2008, has already halted production of key aircraft models and could cost the company billions of dollars if prolonged. Boeing is also freezing hiring and suspending most parts orders, further straining its suppliers.