Boeing strike fallout: Cost cuts lead to hiring freeze

Transcript:

Conway Gittens: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re staring at on TheStreet at this time.

The Dow set a record closing high on Monday, alternatively the broader market struggled on the back of weakness by Apple. The stock turned into less than pressure amid speculation that debut pre-orders for the emblem new iPhone Sixteen don't appear to be strong enough.

Anticipation is building toward the Federal Reserve’s decision on interest rates. Policymakers initiate their two-day meeting on Tuesday. Investors may also have the latest retail sales figures to search over.Boeing strike brings airplane production to virtual standstill

Related: Boeing strike brings airplane production to virtual standstill

Turning to other business headlines: Boeing is tightening its belt as a workers’ strike halts production of its money-making 737 aircraft. Greater than 30,000 workers walked off the factory floor last week and are in point of fact on the picket line. One analyst says Boeing will lose 1,000,000 dollars day after day the staff are on strike.

So Boeing is in money-saving mode with a hiring freeze, the possibility of temporary layoffs, and a ban on un-necessary personnel shuttle. In the same way, Boeing put a halt on supply purchases for its 737, 767, and 777 jets. This may spark off a domino effect among smaller suppliers with Boeing instantly or circuitously supporting 1.6 million jobs.

CFO Brian West told employees in a letter, “This strike jeopardizes our recovery in a significant way and we should take necessary actions to preserve cash and safeguard our shared future.”

The strike has already put Boeing’s credit standing in jeopardy, which would mean higher borrowing costs and a time when revenues won’t be flowing in. Boeing already burned through $eight billion within the first half of the year and the strike will make its financial situation more tenuous.

These are turbulent times for the aerospace giant. Its rocket division needed to leave astronauts on the space station attributable to safety concerns with its Starliner spacecraft, previous to that it needed to address a plane door flying off mid-air, after which there were both fatal 737 MAX crashes back in 2018 and 2019.

That’ll do it for your Every single day Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.

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