Spirit AeroSystems has announced a significant layoff of 400-450 hourly production workers in Wichita, as reported in an internal memo sent to International Association of Machinists-represented employees. The decision comes as a response to high inventory levels, prompting the company to align its operations with customer needs.
In the memo, Spirit Senior VP Terry George expressed the challenging nature of the decision, stating, ‘Due to high inventory levels, we must slow down our operations to align our workforce with the needs of our customers. Consequently, we have made the difficult decision to reduce our hourly production workforce in Wichita by approximately 400-450 employees.’
Spirit spokesperson Joe Buccino confirmed the layoffs, attributing the workforce reduction to a recent slowdown in the delivery rate on commercial programs. The company aims to inform affected employees in the coming weeks and is committed to executing the transition with compassion.
Last week, Spirit AeroSystems Holdings Inc. reported a first-quarter loss of $616.7 million, with a loss of $5.31 per share. Adjusted for non-recurring costs, the losses amounted to $3.93 per share.
The Federal Aviation Administration (FAA) audit also revealed workers at Spirit AeroSystems using unusual procedures. The full text of the memo sent to IAM employees emphasized the company’s acknowledgment of the uncertainty and concern the layoffs may bring to the affected families.
Employees directly impacted by the layoffs will receive specific instructions on the exit process in the coming weeks. Additionally, a set of Frequently Asked Questions (FAQs) has been provided to address immediate queries. Employees are encouraged to reach out to HR Business Partners or union representatives for further inquiries or concerns.
Spirit AeroSystems expressed gratitude for the contributions of the affected employees and acknowledged the understanding and resilience demonstrated during this period of adjustment.
