By Eric M. Johnson
By Eric M. Johnson
SEATTLE, Jan 10 (Reuters) – Boeing Co’s BA.N largest provider, Spirit AeroSystems Holdings Inc SPR.N, plans to put off greater than 20% of the workforce at its Wichita-Kansas base because it grapples with halted manufacturing and uncertainty over when 737 MAX jets will return to service, in line with an organization memo seen by Reuters.
The layoffs, amounting to greater than 15% of the corporate’s total workforce, mark the primary main 737 MAX-related disruption at one of many world’s largest aerospace firms, and alerts extra ache forward because the 737 MAX’s security ban ripples throughout this system’s U.S.-centric provide chain.
Cuts of this magnitude additionally current a significant roadblock for Boeing’s longer-term plan to ramp up MAX manufacturing as soon as it’s cleared to renew business flights.
Spirit shares misplaced 3.4% in Friday buying and selling.
The memo from Chief Govt Officer Tom Gentile stated the layoffs would have an effect on 2,800 employees at Spirit’s marquee facility in Wichita, with the opportunity of extra to comply with based mostly…