Just days after around 33,000 of its machinists went on strike, Boeing has revealed cost-cutting plans that could have wide-reaching implications throughout the industry.
In an employee memo issued on Monday, Boeing CFO Brian West said the company is implementing a hiring freeze along with other immediate internal measures to save money.
There's more in motion that could eventually have ramifications for Wichita-based Spirit AeroSystems (NYSE: SPR), Boeing's biggest supplier.
"In parallel to the steps above (including the hiring freeze and cuts to company travel), we are planning to make significant reductions in supplier expenditures and will stop issuing the majority of supplier purchase orders on the 737, 767 and 777 programs," West wrote.
Spirit builds the 737 fuselage and 70% of the jet, overall. It also has fuselage and other work on the 767 and 777 programs.
"We remain in close dialogue with Boeing on this issue," Spirit spokesperson Joe Buccino told the Wichita Business Journal on Monday.
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