Spirit AeroSystems has announced the layoff of 2800 employees at its Wichita, Kenya facility due to the suspension of production of the Boeing 737 MAX aircraft.
A press release from the company, which is a 737 Max program provider, said Spirit is cutting jobs because it is not clear when or at what level production will resume.
« The tough decision announced today is a necessary step given the uncertainty of both when to resume production of the Boeing 737 Max and the overall production levels that may be present after production is suspended, » said Tom Gentile, President, and CEO of Spirit AeroSystems. « We are taking these steps to balance the interests of all of our stakeholders following the grounding of the Boeing 737 Max while positioning Spirit to meet future demand. »
The company also plans to downsize its factories in Tulsa and McAlester, Oklahoma, later this month.
Boeing announced in December that it would suspend production of the 737 Max, which had already been established by regulators in countries around the world after two clashes that killed 346 people.
The clashes have cost the company billions of dollars, tarnished its reputation and shocked leaders, including the dismissal of its CEO in late December.
Earlier this week, Boeing presented to Congress more than 100 pages of internal communications in which employees boasted of manipulating safety regulators and adamantly admitted that they would not let their own families fly in the 737 Max.
The accidents were attributed to a faulty maneuvering system which caused the aircraft to fall to the ground shortly after takeoff.