Spirit AeroSystems is expected to lay off some 400-450 workers at its Wichita, Kansas, facility following a decrease in production rates at Boeing, the company’s largest customer.
The news was initially reported by Wichita-based KSN, which obtained an internal memo stating, “The recent slowdown in the delivery rate on commercial programs compels a reduction to our workforce in Wichita. In the coming weeks, we will inform affected employees. We are committed to implementing this transition in as compassionate a manner as possible.”
Currently, Spirit AeroSystems employs 12,600 workers at its Wichita factory. The company serves as Boeing’s primary supplier of fuselages for the 737 MAX, although deliveries have been significantly slowed following safety concerns, including the Alaska Airlines door plug incident.
According to CNBC, Spirit AeroSystems reported a quarterly loss of $616.7 million for the first three months of the year. The company also noted first-quarter Boeing deliveries were down 31% from the same period last year with overall deliveries down 11.3%.
Meanwhile, Boeing is still in talks to buy Spirit AeroSystems, which it spun off from in 2005.
