Boeing supplier Spirit AeroSystems announces more layoffs
Boeing Co.'s (BA) supplier Spirit AeroSystems (SPR) announced a fresh round of layoffs late Friday, pinning it on the latest production-rate cut for Boeing's 737 Max jets and the ongoing impact of the pandemic on new commercial aircraft and the airline industry in general. Spirit will reduce the headcount on its commercial-jet program by 1,100 employees, resulting in 450 new layoffs at its main Kansas facility after taking into account previous layoffs, reassigning employees to defense programs and temporary special projects building ventilators, and buyouts. "Our production rates for commercial aircraft have fallen from historic highs to significantly lower volumes in a matter of months," Chief Executive Tom Gentile said in a statement. "We are taking this action to better calibrate our employment level to the reduced demand we see from our customers." The 737 Max production rate was cut for the third time this year, lowering Spirit's production to 72 jets from 125 jets in 2020, a reduction of more than 80% from 2019 production rates, the company said. Spirit makes the 737 Max fuselage and other components. The jet family has been grounded since March 2019 following two deadly crashes less than five months apart blamed on a faulty anti-stall system. Boeing has said the plane will return to service later this year after hardware and software changes and an ongoing recertification process.Shares of Spirit Airlines fell 0.4% in the late session Friday after ending the regular trading day down 3.7%.
-Claudia Assis; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
July 31, 2020 18:22 ET (22:22 GMT)
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