by Nadya Faulx and Tom Shine, Kansas News Service
Spirit AeroSystems announced Friday that it will lay off 2,800 employees at its plant in Wichita as the shutdown of the Boeing 737 Max program drags on.
The move comes just weeks after Boeing ordered Spirit to halt all deliveries of 737 Max components. Spirit produces about 70 percent of the jet at its facility in south Wichita, including the fuselage. The program accounts for half of the company’s annual revenue.
“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,” Spirit CEO Tom Gentile said in a statement.
The company says employees will receive compensation during the required 60-day notice period. Employees will begin leaving on Jan. 22.
Further workforce reductions are possible in the future, Spirit said in a news release.
Spirit earlier this week said it was seeking voluntary layoffs. The company employs about 13,000 people in Wichita, making it the city’s largest private employer.
Gov. Laura Kelly has previously offered help to Spirit employees, including possibly using the state’s fund for unemployment benefits to pay part of the salaries of Spirit workers, so that they could remain in their jobs.
The company said it reduced the number of layoffs by moving some 737 Max employees to other programs. It said it plans to hold job fairs with other aerospace companies to help laid-off employees find work.
Spirit also announced smaller layoffs later this month at its two facilities in Oklahoma.
The problems at Spirit and Boeing also are affecting more than 40 aerospace companies in south-central Kansas that provide parts and services for the 737 Max.
The 737 Max was grounded last March following two fatal crashes overseas. The FAA has not indicated when the jet might be cleared to return to service.
U.S. Senator Jerry Moran, who toured a Spirit supplier in Wichita on Thursday, said he is continuing to urge the FAA to return the 737 Max to service as soon as the jet is found to be safe. He also said he has been in contact with President Donald Trump.
“And so the message is: Sooner rather than later, please get these planes flying,” Moran said.
Gentile, Spirit’s CEO, said in the statement that when production levels of the 737 Max “increase sufficiently in the future, we look forward to recalling employees impacted by today’s announcement.”
When that will be is uncertain. When Boeing resumes production, it is likely to be at a slower rate than before the plane was grounded, Spirit said in a news release.
Spirit said it has more than 100 737 Max structures in storage at its facilities. In addition, Boeing has several hundred 737 Max airplanes built but not yet delivered to its customers.
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