JULY 2, 2024 — BOEING AGREES TO ACQUIRE SPIRIT FOR $4.7 BILLION
A Boeing statement noted, “Bringing Spirit in-house will 'fully align the companies’ production systems and workforces.”
Look for restructuring and personnel realignments in the coming months.
JUNE 22, 2024 — LAYOFFS BEGIN
The company has laid off 310 workers, from its production workforce.
According to a company spokesperson, "These changes were driven by the need to slow down our operations of Commercial programs due to high inventory levels."
APRIL 19, 2024 — 450 WICHITA EMPLOYEES TARGETED
According to a company spokesperson, “The recent slowdown in the delivery rate on commercial programs compels a reduction to our workforce in Wichita.”
MARCH 3, 2024 — EMPLOYEE WARNING
Boeing is in talks to reacquire Spirit AeroSystems.
According to a Boeing company spokesperson, “We believe that the reintegration of Boeing and Spirit AeroSystems’ manufacturing operations would further strengthen aviation safety, improve quality, and serve the interests of our customers, employees, and shareholders. Although there can be no assurance that we will be able to reach an agreement, we are committed to finding ways to continue to improve the safety and quality of the airplanes on which millions of people depend each and every day.”
FEBRUARY 24, 2021 — 8,000 LAYOFFS AND $870 MILLION IN LOSSES in 2020
2020 was not kind to Spirit. The downturn in global aviation activity, much of it related to the Covid-19 pandemic, and the loss of major business when Boeing halted production on the 737MAX, decimated the company and its employees, many of whom are extremely skilled at aircraft component production and assembly.
In comparison, the company booked a $530 million profit in 2019 and employed 18,200 employees.
FEBRUARY 13, 2021 — LAYOFFS CONTINUE IN RESPONSE TO BOEING’S PLANS
The company has announced that it will layoff 100 hourly workers in the Tulsa, Oklahoma facility. The decision is in response to the worldwide travel restrictions of Covid-19.
Boeing’s announcement of a reduction in their 787 line has resulted in a shift of 115 employees from their 787 production line to other programs within the facility.
AUGUST 1, 2020 — 450 ADDITIONAL LAYOFFS IN WICHITA, KANSAS
The company has confirmed another 450 employees will be laid off in Wichita.
According to a company spokesperson, "Our production rates for commercial aircraft have fallen from historic highs to significantly lower volumes in a matter of months. 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."
JULY 18, 2020 — VOLUNTARY LAYOFFS
The company is offering voluntary layoffs to its managers in Wichita, Kansas along with some SPEEA WTPU (Wichita Technical and Professional Unit) represented employees in certain job classifications as the first step in restructuring due to the Boeing 737 MAX grounding and a major downturn in commercial aviation.
MAY 1, 2020 — 1,450 LAYOFFS IN WICHITA, KANSAS
“Spirit AeroSystems announced today it will reduce employment at sites supporting commercial programs a result of lower demand for commercial airplanes. Spirit is a supplier to Airbus and Boeing, both of which announced lower production rates for commercial aircraft due to the impact of COVID-19 on the aviation industry.”
"Our actions follow reduced demand from our customers, who have lowered production rates as demand for new airplanes declines due to the impact of COVID-19," said Tom Gentile, President, and CEO, Spirit AeroSystems. "In addition to reducing employment, we are taking other initiatives to lower costs and preserve liquidity, which included raising $1.2 billion in high yield secured second lien bonds in April. We are focused on ensuring Spirit AeroSystems remains a healthy business and emerges from this crisis with a bright future."
As part of the overall employment reductions, Spirit offered a voluntary layoff to union-represented employees in Wichita, Kan. earlier this week. Today Spirit issued a notice to the State of Kansas under the Worker Adjustment and Retraining Notification (WARN) Act of layoffs affecting approximately 1,450 hourly and salaried employees at its site in Wichita. Spirit's Wichita employees affected by these layoffs are expected to begin exiting the company on May 15. Later this month, smaller reductions will occur at Spirit's remaining U.S. sites that perform commercial work. Spirit's global sites are reviewing workforce requirements and will announce their plans in the coming weeks.”
JANUARY 10, 2020 — 2800+ LAYOFFS CONFIRMED
“Spirit AeroSystems today issued a notice under the Worker Adjustment and Retraining Notification Act of layoffs affecting approximately 2,800 employees at its Wichita, Kansas facility. Spirit is taking this action because of the 737 MAX production suspension and ongoing uncertainty regarding the timing of when production will resume and the level of production when it does resume.”
“This decision allows Spirit to begin aligning its cost structure to the production suspension and, after such suspension, what Spirit expects will be production levels lower than Spirit’s levels in 2019.”
“Spirit is a significant supplier on the 737 MAX program, with its workshare accounting for 70 percent of the airplane’s structure. This includes the entire fuselage, thrust reversers, engine pylons and wing components. In addition, the MAX represents more than 50 percent of Spirit’s annual revenue.”
“In conjunction with today’s actions, Spirit plans to implement smaller workforce reductions later this month for its plants in Tulsa and McAlester, Oklahoma, which also produce components for the MAX. Based on final production rates agreed with Boeing, Spirit may have to take additional workforce actions in the future.”
“The difficult decision announced today is a necessary step given the uncertainty related to both the timing for resuming 737 MAX production and the overall production levels that can be expected following the production suspension,” said Tom Gentile, Spirit AeroSystems President, and CEO. “We are taking these actions to balance the interests of all of our stakeholders as a result of the grounding of the 737 MAX, while also positioning Spirit to meet future demand.”
JANUARY 22, 2020 — Original post…
Wichita, Kansas-based Spirit AeroSystems, the world's largest first-tier aerostructures manufacturer is embarking on a major reduction in force beginning with an offer of voluntary retirement to 13,000 workers located in Wichita, Kansas; Tulsa, Oklahoma; and McAlester, Oklahoma. The decision was driven by Boeing’s decision to suspend the manufacture of its 737 MAX. Spirit AeroSystems builds the fuselage, cockpit, and other components used in the ill-fated aircraft.
According to a company spokesperson …
“Boeing directed the company yesterday to stop all 737 MAX deliveries to Boeing effective January 1, 2020, due to Boeing's announced temporary suspension of 737 MAX production. Accordingly, Spirit will suspend 737 MAX production beginning on January 1. Spirit will continue to communicate with Boeing regarding the timetable for resuming production. Because revenue from 737 aircraft components represents more than 50 percent of Spirit's annual revenue, this suspension will have an adverse impact on Spirit's business, financial condition, results of operations, and cash flows. Additional financial information related to the suspension will be provided in Spirit's fourth quarter/full-year 2019 earnings release. Spirit is evaluating all potential actions to align its cost base with lower production levels expected in 2020. Decisions will be guided by a focus on what is best for the long-term interests of Spirit's stockholders and other stakeholders, including employees.”
"Spirit AeroSystems is evaluating a range of potential actions to reduce costs due to ongoing uncertainty regarding the 737 MAX. We do not know how long the pause in production will last, or what the production rate will be when it does resume. Part of our effort includes offering a voluntary layoff program for eligible employees. While no final decisions have been made on additional actions, we remain focused on doing what is in the long-term interests of Spirit, its stockholders, and other stakeholders, including employees.”
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?
