Boeing announces hiring freeze as strike continues

Boeing is facing a challenging situation as a strike by factory workers continues, prompting the company to announce a hiring freeze and consider temporary layoffs. Chief Financial Officer Brian West informed employees of ten immediate cost-cutting measures, which also include pausing pay increases for promotions and limiting travel to only critical needs. The strike, which began last week, involves over 33,000 workers represented by the International Association of Machinists and Aerospace Workers, who walked off the job after rejecting a contract offer that included a 25% pay raise over four years. Boeing's financial health has been under pressure, with reports indicating losses exceeding $25 billion in recent periods. The ongoing strike jeopardizes the company's recovery efforts, as highlighted by West, emphasizing the need for these cost-saving measures.

In light of these developments, Boeing is also reducing spending on suppliers to navigate through this difficult phase. The situation remains dynamic as both the company and the striking workers seek resolution. Boeing's ability to manage this crisis will be crucial for its future stability and operational continuity.