Spirit AeroSystems (SPR) - Get Report is scrambling to cut costs after Boeing (BA) - Get Report said it was suspending work at plants for which the maker of fuselages, wing components and other aircraft parts does work.
Spirit said Wednesday it was reducing pay for all executives in the U.S. by 20%. And it is furloughing for the next three weeks all production managers and workers assigned to Boeing programs at the company's plants in Wichita, Kan., and in Tulsa and McAlester, Okla.
The company already has put in place extensive social-distancing and cleaning protocols as it works to prevent the spread of the deadly coronavirus and keep production moving.
Shares of Spirit AeroSystems at last check rose 6.2% to $19.50.
"Spirit has enacted a robust crisis-management and response process ... to help us navigate the challenges we face due to the covid-19 pandemic," President and Chief Executive Tom Gentile said in a statement.
The cuts come after a series of reductions Spirit AeroSystems implemented earlier this year, after Boeing's Jan. 1 decision to suspend 737 MAX production.
In response, Spirit AeroSystems said it would be cutting its payroll by 2,800 at its Wichita plant and by 400 at its Oklahoma plants.
The company also rolled out a voluntary retirement program for 850 workers and managers and put off $120 million in capital spending.
In addition, Spirit AeroSystems lowered its dividend to a penny a share and extended the suspension of its share-buyback program.