Boeing Furloughs Workers as Strike Halts Key Programs in Pacific Northwest

Two days after announcing a hiring freeze, Boeing has notified employees it will be moving forward with furloughs over the coming days.

This comes after over 30,000 workers with the International Association of Machinists and Aerospace Workers (IAM) rejected a contract renewal with the company and went on strike last week.

The furloughs were anticipated earlier this week as the aerospace company attempts to stop the financial bleeding caused by the strikes. A Bloomberg Intelligence analysis predicted Monday that Boeing could be out $3.5 billion in cash in Q3 if the strike continues through September.

In a memo sent to employees on Wednesday by Boeing CEO Kelly Ortberg, workers were notified that production was paused across many key programs in the Pacific Northwest due to the strike.

“… [O]ur business faces substantial challenges and it is important that we take difficult steps to preserve cash and ensure that Boeing is able to successfully recover,” Ortberg stated in the memo. “As part of this effort, we are initiating temporary furloughs over the coming days that will impact a large number of US-based executives, managers and employees.”

Ortberg stated that all benefits will continue for affected employees. The company is planning for selected employees to take one week of furlough every four weeks on a rolling basis for the duration of the strike.

Along with these steps, Ortberg stated that he and his leadership team will take pay cuts for the duration of the strike. Ortberg is currently one of Washington’s highest-paid CEOs. The Seattle Times reports his compensation package could reach $22 million in 2025. He did not specify in the memo how much his pay would be reduced during the strikes.

“Most important, we won’t take any actions that inhibit our ability to fully recover in the future,” Ortberg stated. “All activities critical to our safety, quality, customer support and key certification programs will be prioritized and continue, including 787 production.”

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