Spirit AeroSystems reduces employment in Wichita as a result of lower demand

Spirit AeroSystems announced Saturday it will reduce employment at sites supporting commercial programs as a result of lower demand for commercial airplanes. Spirit is a supplier to Airbus and Boeing, both of which announced lower production rates for commercial aircraft due to the impact of COVID-19 on the aviation industry.

"In addition to reducing employment, we are taking other initiatives to lower costs and preserve liquidity, which included raising $1.2 billion in high yield secured second lien bonds in April. We are focused on ensuring Spirit AeroSystems remains a healthy business and emerges from this crisis with a bright future,” said Tom Gentile, President and CEO, Spirit AeroSystems.

As part of the overall employment reductions, Spirit offered a voluntary layoff to union represented employees in Wichita, Kan. earlier this week. Today Spirit issued a notice to the State of Kansas under the Worker Adjustment and Retraining Notification Act of layoffs affecting approximately 1,450 hourly and salaried employees at its site in Wichita. Spirit's Wichita employees affected by these layoffs are expected to begin exiting the company May 15. Later this month, smaller reductions will occur at Spirit's remaining U.S. sites that perform commercial work. Spirit's global sites are reviewing workforce requirements and will announce their plans in the coming weeks.

As Spirit continues to respond to the COVID-19 pandemic by changing its work practices to keep employees safe, the company is also working directly to contribute to the fight against COVID-19. Spirit has developed a partnership to manufacture medical devices in Wichita. Approximately 700 employees will be transferred to this temporary special project that is expected to last through October and may go longer, depending upon demand. Spirit will have more information to share on the medical device partnership in the near future.

Spirit's work on defense programs will not be impacted by these announced employment reductions and those operations will continue uninterrupted. Additionally, some employees currently supporting commercial programs may be transferred to available defense work, mitigating the number of employees who may be affected by these workforce actions.

Spirit AeroSystems layoffs

Spirit AeroSystems, Inc. on Thursday continued its previously announced workforce reductions by issuing layoff notices to approximately 150 salaried and management workers in Wichita, Kan. In addition, a significant number of Spirit salaried employees have expressed interest in voluntary retirement and voluntary layoff programs. The company is offering a lump sum severance payment and career transition services to employees who are laid off, and a lump sum severance payment and enhanced healthcare and pension options to eligible employees who decide to participate in the voluntary retirement program.

At the same time Spirit is reducing its salaried and management population, the company is hiring several hundred more factory workers, including assembly, composite, metals and process mechanics, and quality inspectors. These company actions to balance the workforce are being taken to meet record demand from its customers, and become more competitive in a cost-sensitive environment. Spirit is already producing at record rates and ramping up for further increases later this year and in early 2014. Spirit's backlog remains robust at about $38 billion.

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