SEATTLE, WA—According to Twitter user, Jon Ostrower, the CEO of The Air Current, Boeing CFO Brian West has issued a companywide memo detailing the steps it is taking to conserve cash during the IAM strike. Ostrower notes, the "austerity measures will reverberate across the aerospace industry and the broader U.S. and global economy."
The content of the memo by Brian West is posted below:
Team,
As you know, our IAM 751 and W24 represented employees in the Pacific Northwest are on strike. We are working in good faith to reach a new contract agreement that reflects their feedback and enables operations to resume.
However, our business is in a difficult period. This strike jeopardizes our recovery in a significant way and we must take necessary actions to preserve cash and safeguard our shared future. Importantly, we will protect all funding for safety, quality, and direct customer support work.
Actions include:
- Instituting a hiring freeze across Boeing for all levels, and pausing on any pay increases associated with internal executive and management promotions.
- Stopping any travel that is not for critical customer, program, regulatory, or supply chain activity.
- Eliminating all first and business class air travel, including for the Executive Council.
- Suspending non-essential capital expenditures and facilities spending.
- Suspending outside consultant spend and temporarily releasing non-essential contractors.
- Pausing charitable and other contributions, and advertising and marketing expenditures.
- Reducing company participation in airshows, tradeshows, and special events.
- Pausing employee recognition and team event spending.
- Stopping catered meal and food services at Boeing facilities unless customer-related.
- Cancelling any team off-site meetings. On-site meetings that require travel should be made virtual.
The memo closes with the following statement:
"In parallel to the steps above, 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. We are also considering the difficult step of temporary furloughs for many employees, managers, and executives in the coming weeks. I know that these actions will create some uncertainty and concern, as well as many questions. We'll be sharing additional information in the coming days as we have detailed guidance on the implementation of these measures."