# Boeing Freezes Hiring in Sweeping Cost Cuts as It Grapples With Factory Worker Strike
Beleaguered Aerospace Giant Implements Austere Measures to Weather Financial Storm
Cost-Cutting Initiatives Unveiled Amid Ongoing Labor Dispute
Boeing, the aerospace industry behemoth, has announced a hiring freeze and other stringent cost-cutting measures in a bid to navigate a turbulent financial landscape. The move comes as the company continues to grapple with a prolonged strike by factory workers, further exacerbating its operational challenges.
The hiring freeze, effective immediately, will affect all open positions within Boeing's commercial aircraft division. The company cited the need to reduce expenses and streamline operations as the primary reasons for the decision. Additionally, Boeing has implemented a temporary suspension of merit increases for its non-union employees.
The cost-cutting measures are part of a broader effort by Boeing to mitigate the financial impact of the strike, which has disrupted production of its 737 Max aircraft. The strike, which began in September 2021, has already cost Boeing an estimated $1 billion in lost revenue.
In a statement, Boeing CEO Dave Calhoun acknowledged the challenges facing the company but expressed confidence in its long-term prospects. "These actions are necessary to ensure the long-term health of our business," said Calhoun. "We are committed to working with our employees and union partners to resolve the strike and return to full production as soon as possible."
The factory worker strike stems from a dispute over wages, benefits, and working conditions. The union representing the workers, the International Association of Machinists and Aerospace Workers (IAM), has accused Boeing of unfair labor practices. Boeing has denied these allegations and has maintained that its contract offer is fair and competitive.
The hiring freeze and other cost-cutting measures are likely to have a significant impact on Boeing's operations and workforce. The company has not disclosed how many jobs will be affected by the hiring freeze, but analysts estimate that the number could be substantial.
The news comes as Boeing faces intense competition from European rival Airbus, which has gained market share in recent years. Boeing is also grappling with supply chain disruptions and rising costs, further complicating its financial situation.
The cost-cutting measures announced by Boeing are a sign of the challenges facing the aerospace industry as it recovers from the COVID-19 pandemic. The industry is also facing increasing pressure to reduce carbon emissions and develop more sustainable aircraft.
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