WICHITA, Kan., July 31, 2020 /PRNewswire/ -- Spirit AeroSystems
(NYSE: SPR) announced today it will further reduce employment at
its facility in Wichita, Kan., as
a result of the most recent rate reduction on the 737 MAX and the
ongoing global pandemic, which continue to impact the demand for
new commercial aircraft and the airline industry as a whole.
"Our production rates for commercial aircraft have fallen from
historic highs to significantly lower volumes in a matter of
months," said Tom Gentile, President
and CEO, Spirit AeroSystems. "We are taking this action to better
calibrate our employment level to the reduced demand we see from
our customers. This action, along with previous actions, is
intended to reduce costs, increase liquidity and position Spirit to
remain financially healthy while we move through a period of
recovery in the commercial aviation market."
The 737 MAX production rate reduction is the third this year,
lowering Spirit's production from 125 units to 72 units for 2020, a
reduction of more than 80 percent from its 2019 production
rates.
To support the alignment of workforce levels with the customer
demand for aircraft, Spirit will reduce headcount on commercial
programs by 1,100 employees. This announcement represents 450 new
layoffs at the Wichita site when
taking into account prior layoff notifications and employees
transitioning to defense programs, moving to the temporary special
project to build ventilators or electing to participate in the
voluntary layoff opportunity.
"Although this extraordinary time has required us to make
difficult decisions, we remain focused on fulfilling requirements
to our customers, including the important work we provide for
defense and space programs," Gentile said. "I continue to remain
confident in the future of the aviation industry, and in our
ability to navigate through these challenges to emerge a
stronger company."
On the web: www.spiritaero.com
On Twitter: @SpiritAero
About Spirit AeroSystems Inc.
Spirit AeroSystems designs and builds aerostructures for both
commercial and defense customers. With headquarters in Wichita, Kansas, Spirit operates sites in
the U.S., U.K., France and
Malaysia. The company's core products include fuselages,
pylons, nacelles and wing components for the world's premier
aircraft. Spirit AeroSystems focuses
on affordable, innovative composite and aluminum
manufacturing solutions to support customers around the globe. More
information is available at www.SpiritAero.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains "forward-looking statements" that
may involve many risks and uncertainties. Forward-looking
statements generally can be identified by the use of
forward-looking terminology such as "aim," "anticipate," "believe,"
"could," "continue," "estimate," "expect," "goal," "forecast,"
"intend," "may," "might," "objective," "outlook," "plan,"
"predict," "project," "should," "target," "will," "would," and
other similar words, or phrases, or the negative thereof, unless
the context requires otherwise. These statements reflect
management's current views with respect to future events and are
subject to risks and uncertainties, both known and unknown. Our
actual results may vary materially from those anticipated in
forward-looking statements. We caution investors not to place undue
reliance on any forward-looking statements. Important factors that
could cause actual results to differ materially from those
reflected in such forward-looking statements and that should be
considered in evaluating our outlook include, without limitation,
the timing and conditions surrounding the return to service of the
737 MAX and any related impacts on our production rate; our
reliance on Boeing for a significant portion of our revenues; our
ability to execute our growth strategy, including our ability to
timely complete and integrate our announced Asco and Bombardier
acquisitions; our ability to accurately estimate and manage
performance, cost, and revenue under our contracts; demand for our
products and services and the effect of economic or geopolitical
conditions in the industries and markets in which we operate in the
U.S. and globally; our ability to manage our liquidity, borrow
additional funds or refinance debt; the impact of the COVID-19
pandemic on our business and operations, including on the demand
for our and our customers' products and services, on trade and
transport restrictions, on the global aerospace supply chain, on
our ability to retain the skilled work force necessary for
production and development and generally on our ability to
effectively manage the impacts of the COVID-19 pandemic on our
business operations; and other factors disclosed in our filings
with the Securities and Exchange Commission. These factors are not
exhaustive and it is not possible for us to predict all factors
that could cause actual results to differ materially from those
reflected in our forward-looking statements. These factors speak
only as of the date hereof, and new factors may emerge or changes
to the foregoing factors may occur that could impact our business.
Except to the extent required by law, we undertake no obligation
to, and expressly disclaim any obligation to, publicly update or
revise any forward-looking statements, whether as a result of new
information, future events, or otherwise.
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SOURCE Spirit AeroSystems