The aerospace giant said it would temporarily lay off tens of thousands of employees to stem losses from a walkout by the machinists’ union.The New York Times reports that Boeing, one of the world’s leading aerospace companies, has announced plans to temporarily lay off tens of thousands of employees in response to a strike by the machinists’ union. The company’s CEO, Kelly Ortberg, stated that the strike, which began on Friday, has significantly slowed production of commercial airplanes due to the majority of the union’s members working in manufacturing in the Seattle area. In order to mitigate the financial impact of the strike, Boeing has implemented cost-cutting measures and will begin furloughing employees in the coming days.

Ortberg, who joined Boeing last month, also mentioned that he and other company leaders will take a pay cut for the duration of the strike. The furloughs will affect a large number of U.S.-based executives, managers, and employees, but they will continue to receive benefits. Some employees may have a rotating schedule, taking one week off every four weeks. It is unclear which workers will be affected by the furloughs, but engineers, who are represented by a different union, are still required to work during the strike.

Boeing’s decision to furlough employees comes after a panel blew off one of the company’s planes in flight earlier this year, leading to a crisis for the company. In response, federal regulators limited Boeing’s plane production and the company initiated changes to improve quality and safety. Managers will meet with workers to discuss the details of the furloughs, which are expected to last until the strike is resolved. 

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