In response to mounting financial difficulties and a decline in deliveries to Boeing Co., Spirit AeroSystems Holdings Inc. intends to trim its workforce by approximately 450 employees at its Wichita, Kansas headquarters. The reduced production of 737 Max airframes and other components has necessitated a downsizing, according to a spokesperson representing the company. Affected staff members will be notified in the upcoming weeks.
Spirit is facing heightened financial strain and undergoing scrutiny from various federal investigations alongside its former parent, Boeing. This follows a near-catastrophic incident involving a 737 Max aircraft in January. The aerospace supplier disclosed a depletion of US$444 million in free cash during the first quarter, attributing it to the decreased deliveries of 737 airframes to Boeing and losses incurred from contracts to supply Airbus SE’s A220 and A350 airliners.
Boeing confirmed discussions regarding the potential acquisition of Spirit in March, a move aimed at stabilising its supply chain and gaining more direct oversight over aircraft production. The decline in Spirit’s shipments to Boeing ensued after the planemaker ceased acceptance of 737 fuselages with missing or incomplete components from the supplier. Both companies anticipate a reversal of this trend in the latter half of 2024, coinciding with the implementation of new quality measures.
