Boeing To Implement Furloughs Amid Strike As Estimated Losses Soar

On Wednesday, Boeing announced it would begin temporarily furloughing workers following a strike involving some 30,000 workers began Friday.

According to CBS News, Boeing CEO Kelly Ortberg said that U.S.-based executives, managers and other employees would be required to take unpaid leave in the coming days to help the company conserve cash. Those furloughed will be off for one week out of every four for the duration of the strike. Additionally, Ortberg noted that the leadership team would also take pay cuts until the strike concludes.

In a company-wide message to staff, Ortberg said, "While this is a tough decision that impacts everybody, it is in an effort to preserve our long-term future and help us navigate through this very difficult time."

The strike has already taken a significant toll on Boeing, with research firm Anderson Economic Group estimating losses of around $572 million for the company and its workers. Projected losses could hit $1 billion early next week if a deal is not made.

Meanwhile, aircraft production remains stalled until the strike is resolved, and reports suggest that negotiations are progressing slowly. Business Insider reported that Boeing's previous strike in 2008 lasted nearly two months, resulting in the delivery of approximately 70 fewer commercial aircraft than normal during that quarter. At the time, Boeing stated that the walkout led to a revenue decline of $4.3 billion for that period.