Spirit AeroSystems Cuts Payroll After Boeing Production Halt
April 08 2020 - 8:21AM
Dow Jones News
By Matt Grossman
Spirit AeroSystems is further reducing its workforce after major
customer Boeing Co. announced a production halt, the company said
Wednesday.
Spirit said it will furlough production workers and managers on
Boeing programs at plants in Kansas and Oklahoma for 21 days.
Salaried workers at its Wichita, Kan. factory will move to a
four-day work week and U.S.-based executives will take a 20% pay
cut, it said.
On Monday, Boeing suspended production of its 787 Dreamliner
aircraft at its factory in North Charleston, S.C.
Spirit, which makes aviation parts, announced last month a
partial production pause on its lines of Boeing supplies that was
scheduled to last until Wednesday. Disruptions to Spirit's work for
Boeing began earlier this year, even before the start of the
coronavirus pandemic, due to the challenges facing the plane
maker's 737 MAX program after two fatal crashes.
Spirit also makes parts for Airbus SE and for defense-industry
customers.
Spirit said that as of April 2 it had a cash balance of $1.83
billion and debt of $3.04 billion, including a fully drawn $800
revolving credit facility.
Write to Matt Grossman at matt.grossman@wsj.com
(END) Dow Jones Newswires
April 08, 2020 08:06 ET (12:06 GMT)
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