Spirit Aero, hurt by Boeing strike, to furlough 700 workers for 21 days – Reuters
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Spirit AeroSystems (NYSE:SPR) is set to tell employees that it will furlough 700 workers for 21 days, as the strike at Boeing (BA) cuts into the supplier’s cash and inventory space, Reuters reported Friday.
The furloughs reportedly will affect Spirit Aero (SPR) employees working on Boeing’s (BA) 767 and 777 widebody jets, whose production has been stopped by the strike.
“These furloughs are necessary as we have run out of storage space for 767 and 777,” a Spirit Aero (SPR) spokesperson told Reuters, also warning the company would need to lay off workers and announce additional furloughs if the strike continues past November.
Spirit Aero (SPR) also has already fully drawn a $350M bridge term loan facility set up when Boeing (BA) agreed to acquire its former supplier, and it is expected to seek additional help from the planemaker, according to the report.