Spirit Aerosystems (NYSE:SPR) layoffs are coming and SPR stock is down following the news.
The Spirit Aerosystems layoffs are in connection to the recent trouble surrounding Boeing’s (NYSE:BA) 737 Max airplane. SPR is a supplier for Boeing and makes many of the parts that are used in the 737 Max. The layoffs will affect 2,800 employees.
According to an announcement from the company, it doesn’t know how long it will be before Boeing is able to start production of the 737 Max again. Even when it does, Spirit Aerosystems says that it doesn’t expect production numbers to be as high as they previously were.
Unfortunately, it doesn’t seem like the current round of Spirit Aerosystems layoffs will be the only ones. The company is also looking at additional layoffs and more may come in the future, reports Business Insider.
While the Spirit Aerosystems layoffs were only announced today, hints that they were on the way showed up yesterday. An anonymous poster on TheLayoff.com noted that voluntary layoffs had started at the company. They expected normal layoffs to follow after this.
It isn’t just Spirit Aerosystems that is being affected by the Boeing 737 Max troubles. Boeing itself announced in December that then CEO Dennis Muilenburg was stepping down immediately. While the exact reason wasn’t given, it was noted that his departure was by the request f BA’s Board of Directors.
SPR stock was down 3.28% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.