Boeing Cuts Costs To Conserve Cash While Workers Strike

Cost cuts mark the first clear sign of how the strike could affect the hundreds of suppliers that rely on boeing work.

Over 30,000 Boeing workers are on strike and the company is focusing on conserving cash during this time.

Boeing factory workers started walking off the job early Friday after rejecting a tentative labor deal. The actions halted most of Boeing’s aircraft production.

The company has now announced sweeping cost cuts, including a hiring freeze, a pause on non-essential staff travel and reduction on supplier spending to preserve cash as it is impacted by the strikes.

The manufacturer will make “significant reductions” to supplier spending and stop most purchase orders for its 737 max, 767 and 777 jetliners.

The financial impact of the strike will depend on how long it lasts. However, cost cuts mark the first clear sign of how the strike could affect the hundreds of suppliers that rely on boeing work.