Boeing Strike Costs Skyrocket to $5 Billion: A Month of Turmoil for Workers, Suppliers, and the Aerospace Giant

With a historic strike dragging into its second month, Boeing and its workforce face mounting financial losses, while the aerospace supply chain grapples with the growing economic fallout.

The Boeing strike, now in its second month, has reached an estimated cost of nearly $5 billion, according to a new analysis by Anderson Economic Group shared exclusively with CNN. This figure highlights the mounting pressure on the iconic aerospace company and the broader economic impact of the work stoppage.

The strike, which began on September 13 when 33,000 members of the International Association of Machinists (IAM) walked off the job, has brought Boeing’s production to a near standstill. Not a single plane has been worked on at the company’s Everett, Washington, production facility since the strike began — the first of its kind at Boeing in 16 years.

Financial Losses for Boeing, Workers, and the Economy

The brunt of the $5 billion in losses has fallen on Boeing’s workers and shareholders, who account for $3.7 billion in lost wages and stock value, according to Anderson Economic Group. The analysis further revealed that Boeing’s suppliers have suffered an estimated $900 million in losses over the strike’s first four weeks, while non-Boeing Seattle-area businesses affected by the production halt have seen losses of $102 million. Boeing customers — primarily airlines dependent on aircraft deliveries and services — have reported $285 million in losses globally.

Patrick Anderson, CEO of Anderson Economic Group, expressed concern about the growing financial damage to both Boeing and the surrounding region. “Suppliers, Seattle-area businesses, and Boeing customers are paying part of the price,” Anderson said. “Our week-by-week estimates now include significantly larger losses to other businesses in the Seattle area, as well as losses to customers that rely on Boeing’s service and parts.”

With operations frozen, Boeing is facing a steep cash burn, which has led to difficult decisions about its future workforce. The company announced plans to lay off 10% of its workforce, about 17,000 employees, over the coming months in a bid to weather the financial storm.

Struggles and Setbacks at Boeing

Boeing’s current crisis is compounded by a string of challenges in recent years, including regulatory scrutiny and legal troubles. Before Kelly Ortberg took over as Boeing’s CEO in August, the company had pleaded guilty to defrauding the Federal Aviation Administration (FAA). The guilty plea stemmed from Boeing’s failure to disclose critical system upgrades to its 737 Max fleet, a flaw that contributed to two fatal crashes in 2018 and 2019. The subsequent Department of Justice plea deal saw Boeing hit with nearly $1 billion in fines.

Ortberg, addressing the ongoing strike and Boeing’s future in an email to employees, acknowledged the severity of the situation. “Our business is in a difficult position, and it is hard to overstate the challenges we face together,” Ortberg wrote.

A Long Road to Negotiations

Efforts to resolve the strike have so far been unsuccessful. Talks between Boeing and the IAM union, mediated by federal officials, broke off last week after just two days. Boeing’s commercial airplane division president, Stephanie Pope, described the union’s demands as “non-negotiable” and claimed that the IAM had not seriously considered Boeing’s proposals.

However, John Holden, president of IAM District 751, remains hopeful that an agreement can be reached. “I don’t know what the end result’s going to be, but there’s a lot of things on the table,” Holden told CNN. “There are negotiations to be had, and there is an agreement to be made.”

Holden expressed confidence in the IAM’s strike fund, which has been supporting members during the walkout. Despite the strain on Boeing and the broader economy, he emphasized the importance of reaching a fair deal, noting that the strike would have significant long-term consequences. “It’ll impact the GDP for the year. It’ll impact the aerospace supply chain and production going forward. The longer this goes, the harder it is to restart production and get up to speed,” Holden explained.

The Road Ahead

As Boeing faces a prolonged strike and the financial repercussions continue to escalate, both sides are under pressure to find common ground. The stakes are high, not only for the company and its employees but for the entire aerospace industry, which relies on Boeing’s production capabilities.

While Boeing has weathered crises before, including its legal and regulatory challenges surrounding the 737 Max, the current strike represents a crucial test of its resilience. With both sides far apart on key issues, it remains unclear when or how the strike will end — but one thing is certain: the longer it drags on, the more difficult Boeing’s road to recovery will be.