A Boeing 737 MAX-10 lands above the Spirit AeroSystems logo during a flight demonstration during the 54th Paris International Air Show at Le Bourget Airport outside Paris, France, June 22, 2023.
Benoit Tessier | Reuters
Aviation supplier Spiritual AeroSystems on Thursday said it would lay off some of its workers due to slower deliveries on commercial planes amid a slowdown at its largest commercial plane customer. Boeing.
Spirit AeroSystems told employees in a memo: previously reported by Wichita-based KSNthat this will result in a reduction in employment of approximately 400-450 workers per hour.
“We are committed to implementing this transition in the most compassionate manner possible,” Spirit AeroSystems said in a statement.
According to the company’s annual report, approximately 12,600 people worked at the Wichita plant at the end of 2023.
Spirit AeroSystems produces the fuselages of Boeing’s best-selling 737 Max plane at the plant, whose deliveries have been slowed by a door panel explosion and the ensuing safety crisis at Boeing.
Last week, Spirit AeroSystems reported that Boeing’s first-quarter deliveries were down 31% compared to the same period in 2023, and overall deliveries were down 11.3%.
For the first three months of the year, it reported a quarterly loss of $616.7 million. The company has struggled financially in recent years and last reported a profit in 2019.
The company is also in negotiations regarding takeover by Boeingfrom which it spun off in 2005. About 70% of Spirit AeroSystems’ revenue last year came from Boeing, although the company also makes parts for rival Boeing Airbus.
Boeing CEO Dave Calhoun told CNBC in an April 2024 interview that it was “more than likely” the companies would reach an agreement in the second quarter.
