Boeing’s CEO said Wednesday that the company will begin furloughing “a large number” of employees to conserve cash during the strike by union machinists that began last week.
Chief Executive Kelly Ortberg said the people who would be required to take time off without pay starting in the coming days include executives, managers and other employees based in the U.S.
“While this is a tough decision that impacts everybody, it is in an effort to preserve our long-term future and help us navigate through this very difficult time,” Ortberg said in a company-wide message to staff.
Boeing didn’t say how many people will face rolling furloughs, but the number is expected to run into the tens of thousands. The aerospace giant had 171,000 employees at the start of the year.
About 33,000 Boeing factory workers in the Pacific Northwest began a strike Friday after rejecting a proposal to raise pay by 25% over four years. They want raises of at least 40%, the return of a traditional pension plan and other improvements in the contract offer they voted down.
The strike is halting production of several airplane models, including Boeing's best-selling plane, the 737 Max. The company gets more than half of the purchase price when new planes are delivered to buyers, so the strike will quickly hurt Boeing’s cash flow.
Ortberg said selected employees will be furloughed for one week every four weeks while retaining their benefits. The CEO and other senior executives will take pay cuts during the duration of the strike, he said, without stating how deep the cuts will be.
All work related to safety, quality, customer support and certification of new planes will continue during the furloughs, he said, including production of 787 Dreamliner jets, which are built by nonunion workers in South Carolina.
Ortberg said in a memo to employees that the company is talking to the International Association of Machinists and Aerospace Workers about a new contract agreement that could be ratified.
“However, with production paused across many key programs in the Pacific Northwest, our business faces substantial challenges and it is important that we take difficult steps to preserve cash and ensure that Boeing is able to successfully recover,” he said.
Boeing’s chief financial officer warned employees earlier this week that temporary layoffs were possible.
The company, which is based in Arlington, Virginia, but has most of its commercial-airplanes business located in the Pacific Northwest, is also cutting spending on suppliers, freezing hiring and eliminating most travel.
Company and union representatives met with federal mediators Tuesday to restart negotiations and were expected to meet again Wednesday. In a website post addressed to members, the union said it was frustrated by the first day of new talks.
“The company was not prepared and was unwilling to address the issues you’ve made clear are essential for ending this strike: Wages and Pension,” the union said. “The company doesn’t seem to be taking mediation seriously.”
Striking workers are picketing at several locations in the Seattle area, Oregon and California. The union, which recommended the offer that members later rejected by a 96% vote, is surveying the workers to learn what they want in a new contract. The union’s last strike at Boeing, in 2008, lasted about two months.
If the walkout does not end soon, Boeing’s credit rating could be downgraded to non-investment or junk status, which would make borrowing more expensive. Shortly after the walkout began Friday, Moody’s put Boeing on review for a possible downgrade, and Fitch said a strike longer than two weeks would make a downgrade more likely.
Boeing Machinists Union members and supporters wave to traffic on the picket line at the Renton assembly plant, Friday, Sept. 13, 2024, in Renton, Wash. (AP Photo/John Froschauer)
Denise Strike, a 13-year employee of Boeing, right, waves picket signs with 10-year employee Jacob Larson, left, as they strike after union members voted to reject a contract offer, Sunday, Sept. 15, 2024, near the company's factory in Everett, Wash. (AP Photo/Lindsey Wasson)
Boeing workers wave picket signs as they strike after union members voted to reject a contract offer, Sunday, Sept. 15, 2024, near the company's factory in Everett, Wash. (AP Photo/Lindsey Wasson)
Boeing workers wave picket signs as they strike after union members voted to reject a contract offer, Sunday, Sept. 15, 2024, near the company's factory in Everett, Wash. (AP Photo/Lindsey Wasson)
LOS ANGELES (AP) — Dangerous winds returned to Southern California on Tuesday as new wildfires broke out and a pair of major Los Angeles-area blazes burned for a third week, while officials made preparations to protect scorched neighborhoods from toxic ash runoff ahead of potential rain this weekend.
Forecasters cautioned that gusts could peak at 70 mph (113 kph) along the coast and 100 mph (160 kph) in mountains and foothills during extreme fire weather that's expected to last through Tuesday afternoon.
The National Weather Service warned of a “ particularly dangerous situation ” across Los Angeles, Ventura and San Diego counties due to low humidity and powerful Santa Ana winds. Gusts will ease later in the day, but windy conditions are expected into Thursday.
Fire engines and water-dropping aircraft positioned across the region allowed crews to swiftly douse several small blazes that popped up over the holiday weekend, said David Acuna, a spokesman with the California Department of Forestry and Fire Protection, or Cal Fire.
“Our concern is the next fire, the next spark that causes the next wildfire,” Acuna said Tuesday. He said another worry was that the two major blazes, the Palisades and Eaton fires near Los Angeles, could break their containment lines.
Evacuations were ordered Tuesday when the Friars Fire broke out near a San Diego mall and flames ran up a hillside toward residences, Cal Fire said.
Meanwhile, evacuation orders were lifted for the Lilac Fire in the Bonsall area of San Diego County, which burned at least 85 acres (34 hectares) of dry brush after threatening structures, the agency said. Nearby, crews fully contained the 17-acre (34-hectare) Pala Fire.
As a small number of residents were allowed to return to the devastated Pacific Palisades area, Los Angeles Mayor Karen Bass issued an executive order Tuesday to expedite cleanup efforts in burn areas and mitigate the environmental impacts of fire-related pollutants. She ordered crews to remove vegetation, shore up hillsides, install barriers and reinforce roads ahead of possible rain this weekend that could create mud and debris flows.
“This is to prevent additional damage to areas already ravaged by fire, and also to protect our watershed, beaches and ocean from toxic runoff,” Bass said during a news conference.
Bass also warned that winds could disperse ash and urged Angelenos to visit lacity.gov to learn about ways to protect themselves from toxic air during the latest Santa Ana wind event.
There's a 60% to 80% chance of a small amount of rain for Southern California starting Saturday, with most areas likely getting not more than a third of an inch (0.8 cm), said Ryan Kittell, a meteorologist for the weather service's LA office. However up to an inch (2 1/2 cm) of rain could fall during localized thunderstorms, which would be a “worst-case scenario” if it's enough to trigger debris flows on scorched hillsides, he said.
“But even if the rain doesn't materialize this time, it could be a good practice run for those communities because this will be a threat that they’ll have to deal with for months or years," Kittell said Tuesday.
Los Angeles firefighters on Monday quickly extinguished a small brush fire near the iconic Griffith Observatory in a sprawling park overlooking the city. A man suspected of starting the fire was taken into custody, LA police said. Fire crews also quickly extinguished a small blaze near Tujunga and another one along Interstate 405 in the Granada Hills neighborhood that temporarily closed northbound lanes.
Southern California Edison said it had preemptively shut off power to more than 61,000 customers in five counties to prevent winds from toppling electrical equipment and sparking new fires. The utility said it was considering precautionary shutoffs for an additional 251,00 customers.
Authorities urged residents to review evacuation plans and prepare emergency kits, and be on the lookout for fires and report them quickly.
The low humidity, bone-dry vegetation and strong winds come as firefighters continue battling the Palisades and Eaton fires, which have killed at least 27 people and destroyed more than 14,000 structures since they broke out Jan. 7. The Palisades Fire was 61% contained and containment of the Eaton Fire reached 87%.
Former Vice President Kamala Harris and her husband Doug Emhoff flew to Los Angeles Monday after attending President Donald Trump's inauguration and met with firefighters, volunteers and victims of the Eaton Fire in Altadena.
“We just came out to thank (firefighters), to thank the community and just remind folks that we're all in this together,” Harris said. She said their home in Pacific Palisades was still standing.
Trump, who criticized the response to the wildfires during his inaugural address, has said he will travel to Los Angeles on Friday.
California Gov. Gavin Newsom on Monday said the devastation left by the fires underscores the need for partnership between the state and federal governments.
“I look forward to President Trump’s visit to Los Angeles and his mobilization of the full weight of the federal government to help our fellow Americans recover and rebuild,” Newsom said in a statement.
Associated Press radio reporter Julie Walker contributed from New York.
San Diego firefighters knock down a small brush along a hillside over the Mission Valley Shopping Mall in San Diego on Tuesday, Jan. 21, 2025. (AP Photo/Gregory Bull)
FILE - Resident Pauly Harter, right, pulls his son Gavin on a cart during a walk Friday, Jan. 10, 2025, in Altadena, Calif. (AP Photo/Jae C. Hong, File)
FILE - Nancy Belanger pours water on a neighbor's fire-ravaged property in the aftermath of the Palisades Fire in the Pacific Palisades neighborhood of Los Angeles, Thursday, Jan. 9, 2025. (AP Photo/Jae C. Hong, File)
Residences destroyed by the Eaton Fire line a neighborhood in Altadena, Calif., on Tuesday, Jan. 21, 2025. (AP Photo/Noah Berger)
Residences destroyed by the Eaton Fire line a neighborhood in Altadena, Calif., on Tuesday, Jan. 21, 2025. (AP Photo/Noah Berger)
A woman search inside a destroyed home by the Eaton Fire in Altadena, Calif., on Tuesday, Jan. 21, 2025. (AP Photo/Noah Berger)
FILE - Josh Lederer wears a mask to protect him from fumes as he retrieves his children's clothes from his fire-ravaged property in the aftermath of the Palisades Fire in the Pacific Palisades neighborhood of Los Angeles, Thursday, Jan. 9, 2025. (AP Photo/Jae C. Hong, File)
Residences destroyed by the Eaton Fire line a neighborhood in Altadena, Calif., on Tuesday, Jan. 21, 2025. (AP Photo/Noah Berger)
A lone home stands among residences levelled by the Eaton Fire in Altadena, Calif., on Tuesday, Jan. 21, 2025. (AP Photo/Noah Berger)
Residences destroyed by the Eaton Fire line a neighborhood in Altadena, Calif., on Tuesday, Jan. 21, 2025. (AP Photo/Noah Berger)
Residences destroyed by the Eaton Fire line a neighborhood in Altadena, Calif., on Tuesday, Jan. 21, 2025. (AP Photo/Noah Berger)
FILE - Jerome Krausse pushes his mother-in-law in a shopping cart as they evacuate from their home in the Pacific Palisades after a wildfire swept through their neighborhood in Santa Monica, Calif., on Tuesday, Jan. 7, 2025. (AP Photo/Richard Vogel, File)
A firefighter pulls a hose while trying to keep the Lilac Fire from spreading near the Bonsall community of San Diego County, Calif., on Tuesday, Jan. 21, 2025. (AP Photo/Noah Berger)
A firefighter battles the Lilac Fire near the Bonsall community of San Diego County, Calif., on Tuesday, Jan. 21, 2025. (AP Photo/Noah Berger)
A firefighter sprays water while battling the Lilac Fire near the Bonsall community of San Diego County, Calif., on Tuesday, Jan. 21, 2025. (AP Photo/Noah Berger)
Firefighter Joshua Cari sprays water while battling the Lilac Fire near the Bonsall community of San Diego County, Calif., on Tuesday, Jan. 21, 2025. (AP Photo/Noah Berger)
Firefighter Joshua Cari sprays water while battling the Lilac Fire near the Bonsall community of San Diego County, Calif., on Tuesday, Jan. 21, 2025. (AP Photo/Noah Berger)
Firefighters battle the Lilac Fire along Interstate 15 near the Bonsall community of San Diego County, Calif., on Tuesday, Jan. 21, 2025. (AP Photo/Noah Berger)
Firefighter Joshua Cari sprays water while battling the Lilac Fire near the Bonsall community of San Diego County, Calif., on Tuesday, Jan. 21, 2025. (AP Photo/Noah Berger)
Vehicles drive along Interstate 15 as the Lilac Fire burns along a hillside in Bonsall, Calif., Tuesday, Jan. 21, 2025. (AP Photo/Jae C. Hong)
Firefighters walk up a ridge to battle the Lilac Fire in Bonsall, Calif., Tuesday, Jan. 21, 2025. (AP Photo/Jae C. Hong)
Firefighters stand along a ridge as they battle the Lilac Fire in Bonsall, Calif., Tuesday, Jan. 21, 2025. (AP Photo/Jae C. Hong)
Two firefighters roll up a fire hose during the Lilac Fire in Bonsall, Calif., Tuesday, Jan. 21, 2025. (AP Photo/Jae C. Hong)
Vehicles pass through smoke from the Lilac Fire in Bonsall, Calif., Tuesday, Jan. 21, 2025. (AP Photo/Jae C. Hong)
Firefighters battle the Lilac Fire in Bonsall, Calif., Tuesday, Jan. 21, 2025. (AP Photo/Jae C. Hong)
Strong winds carry embers as firefighters work to extinguishe a brush fire in the Winchester community of Riverside County, Calif., on Monday, Jan. 20, 2025. (AP Photo/Noah Berger)
A firefighter extinguishes a brush fire as strong winds carry embers in the Winchester community of unincorporated Riverside County, Calif., on Monday, Jan. 20, 2025. (AP Photo/Noah Berger)
Homeowner David Marquez, left, holds a metal detector as he shows recovered metal items found with his father, Juan Pablo Alvarado, right, inside the walls of their multi-generational home in the aftermath of the Eaton Fire, Sunday, Jan. 19, 2025, in Altadena, Calif. (AP Photo/Damian Dovarganes)
Joel Parkes, a teacher with the Los Angeles Unified School District returns to his destroyed home in the aftermath of the Eaton Fire, Sunday, Jan. 19, 2025, in Altadena, Calif. (AP Photo/Damian Dovarganes)
Joel Parkes, a teacher at Los Angeles Unified School District returns to his destroyed home in the aftermath of the Eaton Fire, Sunday, Jan. 19, 2025, in Altadena, Calif. (AP Photo/Damian Dovarganes)
Joel Parkes, a teacher at Los Angeles Unified School District, left, returns to his home with his wife in the aftermath of the Eaton Fire, Sunday, Jan. 19, 2025, in Altadena, Calif. (AP Photo/Damian Dovarganes)
Homeowner David Marquez, left, holds a metal detector as his father, Juan Pablo Alvarado, right, and a friend look for the remains of gold jewelry and other silver items inside the walls of their multi-generational home in the aftermath of the Eaton Fire, Sunday, Jan. 19, 2025, in Altadena, Calif. (AP Photo/Damian Dovarganes)
Debris from a destroyed home is seen as a newly built ADU (accessory dwelling unit) stands behind after surviving the Eaton Fire, Sunday, Jan. 19, 2025, in Altadena, Calif. (AP Photo/Damian Dovarganes)