Boeing Furloughs Thousands Amid Strike

Boeing announced temporary furloughs for tens of thousands of employees after 30,000 machinists went on strike, halting production. The strike demands include a 40% raise over four years. The ongoing strike, Boeing's first since 2008, risks severe financial repercussions for the company.

Boeing announced on Wednesday that it will temporarily furlough tens of thousands of employees after approximately 30,000 machinists went on strike, halting production of the 737 MAX and other models. CEO Kelly Ortberg confirmed the company's plan to institute rolling furloughs lasting one week every four weeks for specific employees during the strike's duration.

Ortberg also stated that Boeing executives and leaders would receive a pay reduction during the strike. In contract negotiations, the union demands a 40% raise over four years, far above Boeing's 25% offer. Analysts warn a prolonged strike could cost Boeing billions, possibly affecting its credit rating. This marks Boeing's first strike since 2008.

The strike has disrupted production of Boeing's high-demand 737 MAX jets, 777, and 767 aircraft, affecting delivery schedules. Efforts to cut costs include a hiring freeze and limiting parts orders, except for the 787 Dreamliner. Boeing's shares have already fallen 40% this year, despite a slight uptick to $156.86 on Wednesday.

(With inputs from agencies.)