Aircraft manufacturer Boeing announced that it will implement extensive cost-cutting measures such as layoffs and a reduction in unnecessary staff travel due to an ongoing strike involving more than 30,000 factory workers, CNBC reports.
Boeing is also considering laying off employees depending on how long the strike lasts. Orders for parts for the 737, 767 and 777 models are also being halted.
The workers began going on strike early Friday after rejecting a proposal for a new wage agreement.
”We are working in good faith to reach a new agreement that reflects their feedback and allows us to resume operations. However, our business is at a difficult time. This strike significantly jeopardizes our recovery and we must take the necessary steps to preserve liquidity and secure our shared future,” CFO Brian West wrote in an internal message.
Boeing CEO Kelly Ortberg says they want to sit down at the negotiating table again to reach an agreement.
Boeing's stock fell by just over 1 percent on Monday evening and is down 14 percent in the past month.
Source:FinWire-Di.se
