Spirit AeroSystems Holdings Inc. (NYSE:SPR) is set to lay off approximately 450 workers at its main campus in Wichita, Kansas, as it grapples with mounting losses and a slowdown in shipments to Boeing Co.
The reduction in deliveries of 737 Max airframes and other components has compelled Spirit to downsize its workforce, according to company spokesman Joe Buccino. Affected employees will be notified in the coming weeks.
Spirit’s financial strain has intensified amid decreasing deliveries of 737 airframes to Boeing and increasing losses on contracts to supply Airbus SE’s A220 and A350 airliners. The company reported burning through $444 million in free cash during the first quarter.
In addition to financial pressures, Spirit is under scrutiny from federal investigations alongside Boeing following a near-catastrophic accident involving an airborne 737 Max in January.
Boeing’s discussions to acquire Spirit aim to stabilize its supply chain and gain more direct control over aircraft production. The slowdown in Spirit’s shipments to Boeing followed the planemaker’s decision to halt accepting 737 fuselages with missing or incomplete components. Both companies anticipate a turnaround in the second half of 2024 as new quality measures are implemented.
Following the news, shares of Spirit rose by 2.3% in New York, while Boeing gained 3.1%. Local television outlet KSN TV first reported the plan to cut approximately 450 workers.
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