The International Association of Machinists and Aerospace Workers went on strike more than a month ago and is costing the embattled company roughly $1 billion a month. Some 33,000 unionized employees worked at Boeing’s manufacturing factory, which produces its 737 MAX and 767 and 777 planes. Their strike is delaying production and presenting a financial challenge to the company, which is already battling bad press.
In July, Boeing acquired Spirit AeroSystems and assumed its debt. Meanwhile, its customers expecting deliveries of planes via the 777X program will have to wait until 2026 due to the strike. This delay will likely result in a pretax earnings charge of $2.6 billion, according to the company. Another $400 million pretax charge will come as the company shutters its 767 production.
CEO Kelly Ortberg announced he would cut 10% of Boeing’s global workforce, which includes…
