400-450 jobs cut in response to Boeing’s production slowdown and acquisition hold-up
- Spirit AeroSystems to lay off 400-450 workers due to production slowdown at Boeing
- Boeing’s acquisition of Spirit on hold due to disagreement over control of Spirit factories producing parts for Airbus jets
- Boeing aims to produce 38 737s a month, currently below that level
- Spirit struggles with quality issues affecting 737 MAX jets
Jet-fuselage supplier Spirit AeroSystems is laying off 400 to 450 workers at its Wichita, Kansas factory due to a production slowdown at its biggest customer, Boeing. The cuts come as Boeing’s efforts to acquire Spirit are held up because the company has not yet reached a deal with Airbus over control of Spirit factories that produce parts for Airbus jets. Spirit AeroSystems, which was split off from Boeing two decades ago, has been at the center of quality issues affecting 737 MAX jets. The Wichita plant employs about 13,000 people. Boeing had aimed to produce 38 737s a month but is currently producing well below that level. Spirit reported deep losses in the first quarter and might tap financial markets for additional cash.
Factuality Level: 8
Factuality Justification: The article provides accurate and relevant information about Spirit AeroSystems’ layoffs due to production slowdown at Boeing, the issues affecting 737 MAX jets, and the company’s financial situation. It also mentions the ongoing negotiations with Airbus and Boeing’s efforts to address quality control issues.
Noise Level: 6
Noise Justification: The article provides some relevant information about the production slowdown and layoffs at Spirit AeroSystems, but it lacks in-depth analysis or exploration of the underlying issues and consequences. It also contains some irrelevant details such as the mention of Boeing’s acquisition efforts and financial markets. The article could benefit from more context on the industry trends and potential solutions to address quality control problems.
Public Companies: Boeing (BA)
Private Companies: Spirit AeroSystems,Airbus
Key People: Pat Shanahan (CEO)
Financial Relevance: Yes
Financial Markets Impacted: Boeing and Spirit AeroSystems
Financial Rating Justification: The article discusses layoffs at Spirit AeroSystems due to a production slowdown at Boeing, which impacts their biggest customer. It also mentions financial issues such as losses and potential tapping of financial markets for additional cash.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the article. The text discusses layoffs and production slowdowns at Spirit AeroSystems due to quality issues with Boeing.
Move Size: No market move size mentioned.
Sector: All
Direction: Down
Magnitude: Large
Affected Instruments: Stocks, Bonds, Commodities
www.wsj.com 
