An unexpected company is now laying off hundreds in Kansas due to a significant slowdown in the industry, sources are reporting.
Spirit AeroSystems, one of Wichita’s largest employers, has announced the layoff of approximately 300 employees due to a recent slowdown in the delivery rate of commercial programs.
The layoffs, confirmed by company spokesperson Joe Buccino, reflect the need to adjust the workforce to align with current production demands.
“In the coming weeks, we will inform affected employees.
We are committed to implementing this transition in as compassionate a manner as possible,” the spokesperson said.
Spirit remains one of the largest employers in Wichita.
The aviation manufacturer has been in communication with IAM-AW Lodge No. 839 regarding the layoffs.
The Machinists Union confirmed layoff notifications would be complete by the end of the day on Thursday.
“All of those affected by the layoff will be paid through July 4, 2024, and receive their last paycheck July 11, 2024,” reads a release posted on the Local Lodge 839 Facebook page.
“Benefits will remain through July 31, 2024.”
The union said those impacted would receive additional information during an “exit briefing” and “notification call” from the company.
The union said it would also provide additional information and resources to members.
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Other Economy News Today
Applications for unemployment benefits now surge to new highs, a sign that the white-hot labor market is starting to cool off.
First-time applications for unemployment benefits rose last week to 231,000, the highest level since August, per CNN.
Thursday’s data also showed that the number of continuing claims, or applications from people who have filed for unemployment for at least one week, was 1.78 million.
That’s an increase of 17,000 from the prior week, according to the Bureau of Labor Statistics.
The latest numbers come less than a week after the monthly jobs report showed the US economy added just 175,000 positions in April, less than economists expected and a steep drop-off from prior months.
US employers have now added an average of 245,500 jobs per month, versus 2023’s 251,000-per-month average.
Still, hiring remains strong. Although the unemployment rate ticked up to 3.9% last month, it’s the 27th consecutive month that the jobless rate has held under 4%, matching a streak last seen in the late 1960s.
Weekly jobless claims data tends to be volatile but, while one week’s worth of data “does not a trend make,” said Chris Rupkey, chief economist at Fwdbonds.
“We can no longer be sure that calm seas lie ahead for the US economy if today’s weekly jobless claims are any indication.”
“Company layoffs are picking up, hinting at caution on the part of companies as they weigh the outlook for the second half of the year,” he wrote in a note Thursday.
The Federal Reserve has been battling inflation by raising its key lending rate in the hopes of slowing the economy.
While the labor market has so far resisted those efforts, remaining white hot for the past 18 months despite 11 rate hikes from the central bank, Fed Chair Jerome Powell said last week that demand has “cooled from its extremely high level of a couple of years ago.”
Ian Shepherdson at Pantheon Economics said in a note Thursday: “We’d need to see at least a month of elevated readings to convince us that the trend really has turned.”
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Also Read: A Giant Company Now Announces Unexpected Layoffs in Virginia
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About The Author
Ulysses kansa ,garden , sublette they are small towns that need more jobs so people can live better..why close down these businesses they need more !!
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