Spirit AeroSystems Cuts Payroll After Boeing Production Halt

By Matt Grossman

Spirit AeroSystems is further reducing its workforce after major customer Boeing Co. announced a production halt, the company said Wednesday.

Spirit said it will furlough production workers and managers on Boeing programs at plants in Kansas and Oklahoma for 21 days. Salaried workers at its Wichita, Kan. factory will move to a four-day work week and U.S.-based executives will take a 20% pay cut, it said.

On Monday, Boeing suspended production of its 787 Dreamliner aircraft at its factory in North Charleston, S.C.

Spirit, which makes aviation parts, announced last month a partial production pause on its lines of Boeing supplies that was scheduled to last until Wednesday. Disruptions to Spirit's work for Boeing began earlier this year, even before the start of the coronavirus pandemic, due to the challenges facing the plane maker's 737 MAX program after two fatal crashes.

Spirit also makes parts for Airbus SE and for defense-industry customers.

Spirit said that as of April 2 it had a cash balance of $1.83 billion and debt of $3.04 billion, including a fully drawn $800 revolving credit facility.

Write to Matt Grossman at [e-mail]

(END) Dow Jones Newswires

April 08, 2020 08:06 ET (12:06 GMT)

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