The American aircraft manufacturer Boeing is resorting to drastic cost-cutting measures amidst a strike by its largest union. Chief Financial Officer Brian West announced in an email to the workforce an immediate hiring freeze, furloughs for numerous employees, and a restriction on business travel. Even the management is expected to forgo business and first-class flights. These steps are intended to stabilize the financial situation, as the strike threatens the company’s recovery, according to West.

The largest union IAM, which represents around 33,000 Boeing employees, went on strike on Friday, paralyzing production in the Seattle region. The bestselling 737 and 777 models are particularly affected. Boeing is already struggling with significant delivery delays for the 737, further increasing the pressure on the company.

Boeing is in a deep crisis, triggered by a series of technical glitches and production errors. An incident in January, where a fuselage section of a new aircraft tore off shortly after takeoff, led to Boeing being unable to expand production of the 737 series as planned. These setbacks, along with the current work stoppages, are weighing heavily on the company.

Even an Agreement with the Union Could Be Costly for Boeing. An agreement rejected ahead of the strike proposed a 25 percent salary increase over four years but was turned down by 95 percent of the employees. Many workers had to endure stagnant wages in recent years while the cost of living in the region soared.