Spirit AeroSystems (NYSE: SPR) has announced it will make further workforce adjustments at its Wichita, Kansas facility, to align with lower market demand, the company said.
The reduction is the result of the most recent rate reduction on the 737 MAX and the ongoing global pandemic, which continue to impact the demand for new commercial aircraft and the airline industry as a whole.
The 737 MAX production rate reduction is the third this year, lowering Spirit´s production from 125 units to 72 units for 2020, a reduction of more than 80 percent from its 2019 production rates.
To support the alignment of workforce levels with the customer demand for aircraft, Spirit will reduce headcount on commercial programs by 1,100 employees. This announcement represents 450 new layoffs at the Wichita site when taking into account prior layoff notifications and employees transitioning to defense programs, moving to the temporary special project to build ventilators or electing to participate in the voluntary layoff opportunity.
Spirit AeroSystems Inc. designs and builds aerostructures for both commercial and defense customers. The company´s core products include fuselages, pylons, nacelles and wing components.