WICHITA, Kan. (KSNW) – Spirit AeroSystems has announced it issued a notice Friday under the Worker Adjustment and Retraining Notification Act of layoffs affecting approximately 2,800 employees at its Wichita facility.

Employees will receive compensation for the 60-day notice period. Hourly employees affected by these layoffs will leave beginning Jan. 22. Salaried employees will depart beginning Feb. 7.

Spirit AeroSystems has 18,000 employees globally, about 12,000 in Wichita.

One employee tells KSN there is a lot of confusion among workers.

“We’re hearing a lot of information about the shop,” he said. “There’s a lot of managers saying that there will be more hourly employees laid off than salary, but there’s also conflicting information going around. So we really don’t know.”

Union response

A union that represents Spirit machinists workers has released a statement on the layoffs.

International Association of Machinists and Aerospace Workers (IAMAW) District Lodge 70 says it continues to meet with the company to find ways to lessen the impact of the cutbacks. We’ve posted the union’s statement here.

737 MAX

The action is connected to the suspension of the Boeing 737 MAX production and continuing uncertainty of when the production will resume and the level of production when it finally restarts.

Courtesy Spirit AeroSystems

Spirit makes about 70% of the 737 MAX structure, including the entire fuselage, thrust reversers, engine pylons and wing components.

The MAX represents more than 50% of Spirit’s annual revenue.

Spirit believes that when production on the MAX resumes, the levels will be lower than previously expected due, in part, to 100 MAX shipsets currently in storage at Spirit. In addition, Boeing has several hundred MAX airplanes built but not yet delivered to its customers.

Spirit also plans to implement smaller workforce reductions later this month for its plants in Tulsa and McAlester, Oklahoma, which also produce components for the MAX.

Depending on what happens at Boeing, Spirit may have to take additional workforce actions in the future.

“The difficult decision announced today is a necessary step given the uncertainty related to both the timing for resuming 737 MAX production and the overall production levels that can be expected following the production suspension,” said Tom Gentile, Spirit AeroSystems President and CEO. “We are taking these actions to balance the interests of all of our stakeholders as a result of the grounding of the 737 MAX, while also positioning Spirit to meet future demand.”

Spirit says it has tried to lessen the number of layoffs by transferring some MAX workers to other programs. The company also plans to work with other aerospace companies and use job fairs to help laid-off workers find new jobs.

“Our goal is to support Boeing and a safe return to service of the MAX,” added Gentile. “We continue to work with Boeing to develop a new production schedule for 2020 with an eye toward minimizing disruption, maintaining the stability of our production capabilities, and best positioning Spirit for the future. When production levels increase sufficiently in the future, we look forward to recalling employees impacted by today’s announcement.”

Spirit AeroSystem’s impact on Wichita

Aerospace employment in Kansas peaked in 2008, followed by a continual decline until 2017, said Jeremy Hill, director of the Center for Economic Development and Business Research at Wichita State University. Kansas then had a big ramp-up in aerospace jobs in 2018 and 2019.

“We are losing a lot of that growth and we are back at our bottom,” Hill said.

The loss of the 2,800 Spirit jobs is expected to have an impact of just under 5,800 jobs in the economy, he said, noting that other aerospace manufacturers in the supply chain have been announcing layoffs.

The average aerospace worker makes $81,000 annually, and the loss of the 2,800 jobs accounts for lost wages of $220 million, assuming those workers are not rehired within 12 months, Hill said.

State resources

Kansas Governor Laura Kelly has announced a coordinated effort to help workers and other businesses that will be affected by the layoffs.

She is sending Kansas Labor Secretary Delia Garcia to Wichita to lead the state’s effort. To read the governor’s comments, click here.

Washington response

KSN is reaching out to our lawmakers in Washington, D.C. to see if help is available from that front.

Kansas Congressman Ron Estes says his office in Wichita will help connect furloughed workers with resources.

Senator Pat Roberts says he is committed to making sure Wichita remains the Air Capital of the World.

Sedgwick County response

The Sedgwick County Commission released a statement saying the county is focused on supporting the workers.

“Public and private partners are working together and committed to helping our aviation workers and their families get through this difficult time,” the Commission statement says.

Assistance available

There is help available at the city, state and national level. KSN is putting together a list of places that offer assistance. Click here to read the story.

LATEST STORIES: