Boeing’s stock is struggling as a machinist strike disrupts operations, leading to furloughs and raising concerns about the company’s financial outlook. The strike, fueled by rising living costs and a rejected contract offer, is putting pressure on Boeing’s stock, which shows bearish technical indicators.
Boeing has implemented temporary furloughs for thousands of employees due to a strike by the International Association of Machinists and Aerospace Workers. The strike, which began after workers rejected Boeing’s offer of a 25% wage increase, could cost the company $1 billion per week. The furloughs, affecting executives, managers, and employees, are intended to conserve cash and ensure Boeing’s recovery. Negotiations with the union are ongoing, but the demand for a 40% wage hike adds complexity to the situation.
