Boeing to Furlough Thousands Amid Union Strike

Boeing's CEO announced a significant number of employee furloughs to conserve cash during an ongoing union machinists' strike. The temporary layoffs, involving executives and other staff, were prompted after 33,000 workers rejected a pay proposal. Employees will be furloughed intermittently, with senior executives taking pay cuts.

Boeing's CEO announced on Wednesday that the aerospace giant will start furloughing a considerable number of employees to preserve cash during the strike initiated by union machinists last week.

Chief Executive Kelly Ortberg indicated that the layoffs would be temporary, impacting executives, managers, and other workers.

Around 33,000 Boeing factory employees in the Pacific Northwest commenced a strike on Friday after turning down a proposal to increase pay by 25 percent over four years. The workers are demanding at least a 40 percent raise and other contract enhancements.

The furloughs are anticipated to affect tens of thousands of Boeing staff. Ortberg stated that employees would be furloughed for one week every four weeks, and senior executives, including himself, will accept pay cuts during the strike period.

(With inputs from agencies.)