Boeing announces hiring freeze amid factory workers strike

Investing.com — Shares of Boeing (NYSE: ) fell on Monday after the aerospace giant announced a hiring freeze and a pause in non-essential staff travel as part of an effort to cut costs during an ongoing strike of more than 30,000 factories. workers.

Citing a staff memo, CNBC said the company is also considering furloughing employees, depending on how long the strike lasts.

It is also halting purchase orders for most of its 737 Max, 767 and 777 planes, CNBC said, which could affect the company’s suppliers.

In the staff memo, CFO Brian West said Boeing continues to work in “good faith” to reach a new contract agreement with striking workers that “allows operations to resume,” according to CNBC.

But West signaled the business was going through a “difficult period”, adding that the strike was “jeopardizing” its recovery from recent high-profile incidents, which has increased scrutiny of its safety situation. West said Boeing must take “necessary steps to preserve cash and protect our shared future,” CNBC said, though he noted he would not cut funding for safety, quality or direct customer support.

Over the weekend, striking union leader Jon Holden warned the work stoppage could last “a while” as workers push Boeing to improve pay and pensions.

Speaking in a radio interview on Saturday, Holden said workers had “the most leverage and the most power at the most opportune time that we’ve ever had in our history.” Members of the union, which represents workers in the US Pacific Northwest, “expect” us to use that leverage, he added.

Holden initially backed a tentative deal with Boeing that would have raised wages by 25 percent over four years, among other concessions. However, workers voted overwhelmingly against the new contract and chose to go on strike on Friday.