Boeing CEO Announces Temporary Furloughs For Thousands Of US Workers
By Lukas Souza - Journalist | Simple Flying
Because of a strike by 33,000 unionized employees, Boeing is temporarily furloughing staff to save money. According to a report from CNN, staff will be off for one week out of every four during the strike.
Rolling furloughs
Most of the work on Boeing 's commercial product lines has stopped. Last Friday, 33,000 union members began to walk off the job after voting to strike. The ongoing strike is the first at Boeing since 2008 and is heavily affecting the manufacturer's facilities in Washington.
Due to the severity of the strike, CEO Kelly Ortberg emailed employees earlier today to discuss the furlough. The furlough affects executives and nonunion workers. Those furloughed will keep their benefits but will be off one week out of every four on a rolling basis during the strike.
The memo stated that the furloughs are designed to minimize the impact on any one individual. Ortberg, who took over as CEO last month, will take a pay cut during the strike, and other executives will do the same. The number of furloughed staff members was not shared, but reports suggest this is expected to reach the tens of thousands.
Beyond the furloughs, Boeing had previously announced other measures to save money. This includes a hiring freeze, reduction on travel, and a reduction on purchases from vendors and suppliers.
“While this is a tough decision that impacts everybody, it is in an effort to preserve our long-term future and help us navigate through this very difficult time. We will continue to transparently communicate as this dynamic situation evolves and do all we can to limit this hardship.” - Kelly Ortberg, Chief Executive Officer, Boeing
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