Jan 11, 2020 - Economy & Business

Boeing supplier to lay off more than 20% of its workforce in Kansas

Grounded 737 Max planes

Photo: Nicolas Economou/NurPhoto via Getty Images

Boeing supplier Spirit AeroSystems announced Friday it will lay off more than 20% of its workforce in Wichita, Kansas, just one day after documents were revealed confirming that Boeing employees had raised concerns about the 737 MAX's safety, AP reports.

Why it matters: The roughly 2,800 layoffs are a sign that Boeing's difficulties are beginning to ripple out, AP writes. Spirit AeroSystems, Wichita's largest employer, cites the "ongoing uncertainty" surrounding Boeing's 737 MAX jet as the primary reason for the layoffs, the Washington Post notes.

  • Nearly half of Spirit's yearly revenue came from selling parts for the 737 MAX, per the Post.
  • Spirit's stock took a hit on Friday, after already losing more than 20% since the grounding of the 737 MAX last March, according to AP.

What they're saying:

  • Sen. Jerry Moran (R-Kan.): "The layoffs announced today at Spirit AeroSystems have dealt a harsh blow not only to the company but also to Spirit suppliers and subcontractors. I plan to continue working with the administration and Department of Defense to showcase the capabilities of Wichita manufacturers in an effort to diversify the industry and bring more job opportunities to the region.”
  • Gov. Laura Kelly promised an "all-hands-on-deck approach" across the state government. "We stand in lockstep with the workers and companies affected," Kelly said, per AP.
  • Nearly half of Spirit's yearly revenue cam from selling parts for the 737 MAX, per the Post., Boeing’s callousness has now cost thousands of Kansans their livelihood and endangered the economy of our state, which is dependent on aerospace."

Go deeper:

Go deeper