Spirit AeroSystems will lay off 450 more Wichita workers
As Spirit AeroSystems continues to struggle with the fallout from the 737 Max and the coronavirus pandemic, another 450 employees in Wichita will be laid off.
In all, 1,100 Spirit employees will lose their jobs on commercial programs, taking into account previous layoff announcements as well as workers who have transitioned to defense programs and ventilator work.
Some employees have chosen to take a voluntary layoff as well. The 450 new layoffs include represented and non-represented hourly, salary and management employees, according to a memo sent to workers and obtained by The Eagle.
“Our production rates for commercial aircraft have fallen from historic highs to significantly lower volumes in a matter of months,” Tom Gentile, Spirit’s president and CEO, said in a news release. “We are taking this action to better calibrate our employment level to the reduced demand we see from our customers. 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.”
This is the third time this year 737 Max production has been reduced at Spirit. It lowers the company’s production from 125 units to 72 units for 2020, a reduction of more than 80% from its 2019 production rates.
In addition, employees working a shortened four-day week will remain on that schedule until the end of the year, according to the employee memo. U.S.-based executives will also maintain a 20% reduction in pay until the end of the year.
“Although this extraordinary time has required us to make difficult decisions, we remain focused on fulfilling requirements to our customers, including the important work we provide for defense and space programs,” Gentile said. “I continue to remain confident in the future of the aviation industry, and in our ability to navigate through these challenges to emerge a stronger company.”
Boeing, one of Spirit’s largest customers, this week reported losses of $2.4 billion in the second quarter, according to the Associated Press. It also announced more job cuts and reduced production as demand for commercial aircraft has diminished over the course of the coronavirus pandemic.
This story was originally published July 31, 2020 at 5:49 PM.
