Boeing's troubles have trickled down to United Airlines' hiring


Boeing’s ongoing production and delivery delays are continuing to have an effect on the airline industry. Reuters reports that an executive from United Airlines told reporters on Tuesday that its hiring plans for the year have been sharply curtailed as it waits on planes from the manufacturer.

Kate Gebo, the company’s head of human resources and labor relations, reportedly said that United is looking to hire about 10,000 new workers this fiscal year. Previously, there were plans to increase headcount by as many as 15,000. That already represented a step down from 2023, when the company brought on 16,000 people.

This isn’t the first time that United has blamed Boeing for changes to its hiring expectations. In March, the carrier said that it would institute a hiring freeze for pilots due to delays in aircraft delivery from Boeing. United has also said that its fleet needs refreshments.

“We have a significant fleet of 777 and 767 that need to retire at some point later this decade,” said Andrew Nocella, United’s chief commercial officer, on an earnings call in October.

Boeing’s capacity has been reduced since a piece of fuselage fell off an Alaska Airlines-operated 737 Max 9 in January. The Federal Aviation Administration said that Boeing’s plans to fix issues related to the plane’s production are decent but not good enough for the FAA to let the company start ramping up its output.

Nike Inc. has cut staff in its European headquarters as part of a multiyear cost-cutting plan at the world’s largest sportswear company, according to people familiar with the matter.

The Nike campus in the Netherlands — located in the city of Hilversum, just outside of Amsterdam, and known internally as EHQ — is home to more than 2,000 employees.

Nike is laying off about 2% of its global workforce as part of a plan to slash $2 billion in costs. About 750 employees were let go at its global headquarters in Beaverton, Oregon. Converse, a Nike subsidiary in Boston, also eliminated some staff.

Chief Executive Officer John Donahoe said in an internal memo distributed to workers in February that the planned cuts in Europe, the Middle East, and Africa would take place on different timelines than those in its home market.

The staff cuts in North America occurred in two phases earlier this year, starting in February, but dismissals in Europe didn’t occur until recently due to differences in local labor laws.

Nike doesn’t break out financial results for its European market. Europe, the Middle East, and Africa accounted for about $13.4 billion in revenue for Nike, or around 26% of its global sales, last year.

A Nike spokesperson referred Tuesday to a company statement issued in February: “The actions that we’re taking put us in the position to right-size our organization to get after our biggest growth opportunities as interest in sport, health, and wellness have never been stronger.”

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