Due to the production interruption caused by the employee strike, Boeing has taken a series of emergency measures, including freezing recruitment, considering temporarily laying off some employees, and reducing procurement orders from suppliers for the 737, 767, and 777 projects. These measures aim to reduce operational costs and expenses, and alleviate the company's financial pressure.
Due to the production interruption caused by the employee strike, Boeing has taken emergency measures to control costs and maintain the company's operation.
According to the memorandum sent to employees by Boeing's Chief Financial Officer, Brian West, the company has decided to temporarily freeze all new hiring activities and consider having some employees temporarily stop work or take leave, aiming to reduce the company's manpower costs to cope with the production interruption during the strike.
Furthermore, Boeing plans to cut supplier expenses by suspending most of the procurement orders for suppliers related to the 737, 767, and 777 projects, reducing the purchase of components and services. Although this may have a certain impact on the supply chain, affecting project progress and supplier cooperation.
In addition, Boeing will limit all non-essential travel, allowing only travel related to key customers, projects, regulatory requirements, or the supply chain. This is aimed at reducing travel costs.
Moreover, Boeing will also suspend all non-essential capital expenditures and facility-related expenses, including possibly deferring or canceling some non-urgent equipment purchases, plant upgrades, or expansion projects, with the purpose of reducing substantial expenditures in the short term.
Although these measures may have a short-term impact on the company's operation and supply chain, Boeing is attempting to alleviate the negative impact of the employee strike on production and operation by strictly controlling costs.
Editor/Lambor