Analysts estimate the ongoing strike could cost Boeing up to $500 million per week
Boeing has halted hiring and delayed salary increases for employees after 33,000 unionized factory workers went on strike last week, triggering a shutdown in the production of 737 planes.
The aviation giant has been forced to cut orders for its 737, 767, and 777 jets and is considering temporary furloughs.
Furloughs are mandatory temporary or permanent leave without payment.
Boeing also suspended first-class travel, outside consulting and charitable contributions, and paused advertising and marketing spending.
Background
The union rejected a contract offering a 25% wage increase over four years. It demands a 40% raise, citing increases in the cost of living.
Analysts estimate the ongoing strike could cost Boeing up to $500 million per week, adding to pre-strike monthly losses of around $1 billion.
Credit rating agencies Moody’s and Fitch warned of potential downgrades if the strike persists.
Boeing and the workers union have expressed interest in resuming negotiation talks.