Boeing supplier Spirit to lay off more than 20 per cent of workforce in Kansas: memo GlobeBusiness
The headquarters of Spirit AeroSystems Holdings Inc, is seen in Wichita, Kansas, U.S. on Dec. 17, 2019.Boeing Co’s biggest supplier, Spirit AeroSystems Holdings Inc, plans to lay off more than 20% of the work force at its Wichita-Kansas base as it grapples with halted production and uncertainty over when 737 Max jets will return to service, according to a company memo seen by Reuters.
Cuts of this magnitude also present a major roadblock for Boeing’s longer-term plan to ramp up Max production once it is cleared to resume commercial flights.The memo from chief executive officer Tom Gentile said the layoffs would affect 2,800 workers at Spirit’s marquee facility in Wichita, with the possibility of more to follow based on what final production rates are agreed with Boeing.
“We are taking these actions to align our cost structure to what we expect will be lower production rates than Spirit’s 2019 levels.”Previously Boeing’s best-selling plane, the 737 Max has been grounded since March, following two fatal crashes in five months that killed 346 people, hurling the world’s largest plane maker into crisis.The news of the layoffs comes just days after Spirit said it would offer voluntary layoffs to some employees.
The employees affected include a mix of hourly and salaried employees and managers, though some 737 Max employees could be transferred to other programs, Gentile said.
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