CFO Message to Employees: Call to Action - Approaching Storage Capacity

WICHITA, Kan., October 18, 2024 - CFO Irene Esteves shared the following message with Spirit AeroSystems employees today:

Team,

Given customer pressures, we are implementing additional cost containment measures and workforce actions.

On our 767 and 777 programs, in particular, we do not have storage capacity necessary to continue producing new units. Due to this, a 21-day furlough will be implemented for Wichita hourly direct, support functions and management employees working on these two programs beginning October 28, 2024. Our teams in those areas will be receiving additional information on the furlough.

Please know this decision was made after careful consideration and pursuit of all available options. At this time, all other programs will continue operations as normal. However, if the labor dispute between our customer and the International Association of Machinists extends beyond Thanksgiving, additional workforce actions, including furloughs and layoffs, may be required.

Due to our lower revenues, we need to step up our efforts to contain costs. The following measures are effective immediately and until further notice:

• Hiring freeze, including no backfills
• Overtime is eliminated
• A reduction of 15% in non-labor spending
• Travel is eliminated
• All advertising & marketing expenditures are eliminated, including air shows, trade shows and special events
• Consultant spend is eliminated
• Working Capital will be reduced through strict inventory management
• Capital expenditures will be scaled back

Any exceptions must be pre-approved in writing by both the CEO and myself.

We will share more information with you when we file our Q3 2024 financial results and again in mid-November should the strike continue and require additional actions.

During this time of heightened uncertainty, I appreciate your patience and understanding. Together, we will win by staying focused on Safety, Compliance and Quality as we build what's best in aerospace.

Irene Esteves
Executive Vice President, Chief Financial Officer
Spirit AeroSystems

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