Boeing implements hiring freeze amid strike

The Street

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why Boeing won’t be hiring new employees anytime soon.

Transcript

00:00I'm Conway Gittins reporting from the New York Stock Exchange, here's what we're watching

00:04on the street today.

00:05The Dow set a record closing high on Monday, but the broader market struggled on the back

00:09of weakness by Apple.

00:11The stock was under pressure amid speculation.

00:14Debut pre-orders for the new iPhone 16 are not strong enough.

00:18Anticipation is building toward the Federal Reserve's decision on interest rates.

00:22Policymakers begin their two-day meeting on Tuesday.

00:25Investors will also have the latest retail sales figures to look over.

00:30Turning to other business headlines, Boeing is tightening its belt as the workers' strike

00:35halts production of its money-making 737 aircraft.

00:38More than 30,000 workers walked off the factory floor last week and are now on the picket

00:43line.

00:44One analyst says Boeing will lose a million dollars every day the workers are on strike.

00:50So Boeing is in money-saving mode with a hiring freeze, the possibility of temporary

00:56layoffs and a ban on unnecessary staff travel.

01:00In addition, Boeing put a halt on supply purchases for its 737, 767 and 777 jets.

01:07This could cause a domino effect among smaller suppliers, with Boeing directly or indirectly

01:12supporting 1.6 million jobs.

01:16CFO Brian West told employees in a letter, quote,

01:19This strike jeopardizes our recovery in a significant way, and we must take necessary

01:25actions to preserve cash and safeguard our shared future.

01:30The strike has already put Boeing's credit rating in jeopardy, which would mean higher

01:34borrowing costs at a time when revenues won't be flowing in.

01:37Boeing already burned through $8 billion in the first half of the year, and the strike

01:43will make its financial situation more tenuous.

01:46That'll do it for your daily briefing from the New York Stock Exchange.

01:49I'm Conway Giddens with the Street.

Category

Transcript

Recommended