Spirit AeroSystems Lays Off 400-450 Workers in Wichita
Spirit AeroSystems is laying off 400-450 hourly production workers in Wichita due to high inventory levels. Senior VP Terry George announced the decision in an internal memo, explaining that operations need to slow down to align with customer needs. The layoffs are confirmed by spokesperson Joe Buccino, who cited a recent slowdown in delivery rates on commercial programs as the reason.
Wichita Mayor Lily Wu expressed concern, noting the challenging business environment and committing to support affected workers through Workforce Alliance's Rapid Response program. The International Association of Machinists and Aerospace Workers is also actively seeking ways to support those impacted.
This announcement follows Spirit AeroSystems' report of a $616.7 million loss in the first quarter, with a per-share loss of $5.31. The company aims to implement the transition as compassionately as possible, with managers contacting affected employees in the coming weeks.
Why This Matters To Our Industry:
Spirit AeroSystems' layoffs signal potential disruptions in the supply chain. With a major player slowing down operations, there could be delays in aircraft production and delivery, affecting timelines and planning for logistics companies. It's a reminder of how interconnected the supply chain is, and how inventory management issues can ripple through the entire system.
Our Take:
Keep a close watch on aerospace supply chains. Spirit AeroSystems' layoffs highlight how inventory mismanagement can lead to significant operational slowdowns. For logistics industry-goers, this means staying agile and prepared for potential delays or changes in demand. It's crucial to have contingency plans and stay in tune with industry shifts to keep your operations running smoothly.
Spirit AeroSystems is laying off 400-450 hourly production workers in Wichita due to high inventory levels.