Summary
- Spirit AeroSystems lays off 450 due to Boeing 737 MAX crisis
- Boeing might buy back Spirit, marking a major strategic shift
- Spirit AeroSystems builds the fuselages for key Boeing airliners
As the seemingly unending fallout from the Boeing 737 MAX series continues to unfold, supplier Spirit AeroSystems has become the latest company to announce its impacts. Spirit AeroSystems has announced it is to lay off around 450 workers because of the slowdown in Boeing 737 MAX production in the wake of the panel blowing off an Alaska Airlines-operated 737 MAX last January. The ripple effects of Boeing’s production delays are already costing airlines and the effects are expected to last for years to come.
Spirit Aerosystems to lay off 450 employees
Spirit is to lay off hundreds of employees, as confirmed by a memo released by the company. Meanwhile, Reuters reported Spirit had already started to limit overtime and hiring as production has declined amid the 737 MAX maelstrom.
Spirit Aerosystems is one of Boeing’s primary suppliers. It builds the fuselages and installs door plugs (like the one that failed on the Alaska Airlines flight). That being said, it is unclear whether Boeing or Spirit employees last handled the Alaska Airlines panel. Like Boeing, Spirit has also been rocked by whistleblowers accusing the company of hiding defects. The Department of Justice is currently mulling a fraud investigation into Boeing over its 737 MAX jets and incidents.
“The recent slowdown in the delivery rate on commercial programs compels a reduction to our workforce in Wichita. In the coming weeks, we will inform affected employees. We are committed to implementing this transition in as compassionate a manner as possible.” – Spirit AeroSystems
The layoffs will occur at its plant in Wichita, Kansas, reducing its workforce to 13,000 employees. Spirit suffered greater than expected Q1 losses than had previously been predicted. While its Q1 2024 financial results showed a 23% increase in Net Revenues (Q1 2024 $1.7 billion vs Q1 2023 $1.4 billion), its operating loss swelled to $528 million from $95 million (its net loss was $617 million and $281 million respectively).
AeroSystem builds the fuselages of 737 and 787 jets and the flight deck section of almost all Boeing airliners (it also builds parts for Airbus airliners). It is well known for its role in World War II, building B-29 Superfortresses and later B-52 Stratofortresses (still flown by the Air Force).

Related
Putting Together A Boeing 737: How The Process Unfolds
Read about how the Boeing 737 is assembled in the Renton, Washington factory.
Boeing discussing buying back Spirit
Photo: BlueBarronPhoto | Shutterstock.com
Spirit was once part of Boeing, but Boeing divested it in 2005. Now, it looks as though Boeing is planning to buy it back after Boeing confirmed it was in talks to acquire it. There are reports that the two companies may have already reached a potential agreement.
According to the Associated Press, Boeing has had a longtime strategy of outsourcing key work on its passenger planes, and this would mark a major reversal of that strategy. The Associated Press also noted that the approach had been criticized after problems at Spirit disrupted the production and delivery of Boeing’s 737s, 787s, and other aircraft.