This is what happens when you let Wall Street values run a business.
Nine months after the Federal Aviation Administration (FAA) grounded the 737 MAX, Boeing finally pulled the plug on the jet’s production Monday. The company announced it’s temporarily halting the assembly lines in Renton from January, with no specified timeline for a restart.
However, in a welcome surprise for the 12,000-strong Renton workforce, Boeing said there will be no layoffs.
“During this time, it is our plan that affected employees will continue 737-related work, or be temporarily assigned to other teams in Puget Sound,” Boeing said in a statement.
Boeing has faced an unprecedented crisis, with more than 700 MAX aircraft grounded worldwide, including nearly 400 built since the grounding. Many have been in storage so long they’ll need extensive maintenance before they fly. The production stoppage will stop the parked fleet from growing to unmanageable proportions, while retaining the workforce will allow a smoother restart of the assembly lines when that time comes.
If this shutdown runs longer than a month, their supply chain is going to take weeks to come back up to speed.
This is why you don’t let finance types run your business.
Boeing will be suffering as a result of Harry Stonesphincter for years to come.