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A collection of fancy fuselages for Boeing’s 737 Max are kicking back on rail sidings in Wichita, Kansas, looking like they just got stood up for a date at the local diner. Once the envy of every model plane enthusiast, they now wait impatiently for their chance to soar – or, you know, just lie around and collect dust.
Nick Oxford | Reuters
In the latest plot twist of this corporate soap opera, Boeing‘s crafty and utterly uninvited third cousin, Spirit AeroSystems, just announced it will furlough around 700 workers while Boeing’s machinists continue their dramatic stand-off for a sixth consecutive week. It’s like a corporate version of West Side Story, but without the catchy dance numbers or attractive leads.
Over 32,000 Boeing workers stormed off the job back on September 13 after turning down a tentative labor deal with the subtlety of a sledgehammer. This not only thickened the financial fog around Boeing but also dropped a hefty challenge in the lap of the newly-minted CEO Kelly Ortberg, who must now juggle investor confidence with the elegance of a one-legged chicken trying to walk a tightrope.
Spirit’s temporary furlough, claiming a mere 5% of its U.S. workforce, feels a bit like a tiny ice cube floating in a giant cocktail of corporate chaos. Most of these furloughed souls hang their hats near Spirit’s largest facilities in sunny Wichita. Meanwhile, Boeing and its machinists seem to be locked in a game of corporate chicken, with Spirit suggesting further cuts may be on the horizon if the strike doesn’t end by November. Spoiler alert: it probably won’t.
In a bid to turn this drama into some kind of financial feel-good story, Ortberg has come up with a *brilliant* plan to cut costs, which includes laying off 10% of the workforce – aka around 17,000 people. Yes, nothing says ‘we care’ like a massive downsizing. Also, this genius plan will see Boeing saying ‘adios’ to the 767 commercial production by 2027 and pushing back the launch of the long-awaited 777X wide-body jet to 2026. Guess those folks are going to have to wait a little longer to get their jet lag fixed.
Meanwhile, Spirit, in a noble effort to keep the whole ship afloat, is considering furloughs and possibly layoffs – just another day at the office, really. The roughly 700 folks currently on the chopping block were busy with the 777 and 767 programs, for which Spirit has amassed an inventory that would make a hoarder proud. But fear not, the workers flying high on Boeing’s bestseller, the 737 Max, are safe—for now. All three programs are on pause because of the strike, which is not at all confusing.
And let’s not forget, Boeing agreed to *acquire* Spirit this summer, but don’t expect any quick wedding bells. They’re not on track to finalize this merger until mid-2025. Just a friendly reminder that in the capitalist world, nothing ever moves as fast as you’d like. Think of it as a corporate tortoise race, where everyone is desperately trying to beat each other in a game of “Who Can Lose More Money?”
So as Ortberg reaches for his metaphorical life preserver during his first earnings call next Wednesday, the financial tide just keeps on rising. Who knew that the path to corporate glory would be filled with about as many ups and downs as a roller coaster designed by someone with a questionable grip on physics?
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