StockTop News

Spirit AeroSystems cuts 1,100 jobs due to coronavirus, 737 MAX rate reduction

1 Mins read
imageCoronavirus13 hours ago (Jul 31, 2020 08:20PM ET)

(C) Reuters. FILE PHOTO: The headquarters of Spirit AeroSystems Holdings Inc, is seen in Wichita

(Reuters) – Boeing (NYSE:BA) supplier Spirit AeroSystems Holdings (N:SPR) said on Friday it was cutting 1,100 jobs in its commercial programs due to the most recent production rate reduction on the 737 MAX and the ongoing coronavirus outbreak.

Of the 1,100 job cuts, 450 will take place at the company’s facility in Wichita, Kansas, it said in a statement.

“The 737 MAX production rate reduction is the third this year, lowering Spirit’s production from 125 units to 72 units for 2020, a reduction of more than 80 percent from its 2019 production rates”, the company said on Friday.

“This action, along with previous actions, is intended to reduce costs, increase liquidity and position Spirit to remain financially healthy while we move through a period of recovery in the commercial aviation market,” Spirit AeroSystems Chief Executive Tom Gentile said.

The company said late last month it was seeking relief from its lenders.

The earnings of Wichita-based Spirit, which builds the fuselage, thrust reversers, engine pylons and wing components for the 737 MAX, were already under pressure after Boeing halted production of the aircraft in January.

The jet was grounded worldwide in March 2019 after two fatal crashes killed 346 people five months apart.

Spirit AeroSystems cuts 1,100 jobs due to coronavirus, 737 MAX rate reduction

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.