Shares in Boeing (BA.N) and Airbus (AIR.PA) supplier Senior (SNR.L) fell 18% on Tuesday after the British engineering group said it was cutting headcount in response to ongoing challenges in commercial aerospace manufacturing.
Senior said it was resorting to both furloughs and job cuts in response to the ongoing strike at Boeing's commercial aircraft operations and supply chain issues facing Airbus.
"While the full impact on our businesses exposed to the affected programmes is not yet certain, we have moved decisively to contain costs and preserve cash," Senior said in a statement, without disclosing how many positions would be cut.
Senior's shares fell 18.3% to 120 pence, their lowest since December 2022, putting them on course for their biggest percentage drop since August 2020.
"Today's update is clearly disappointing, and the likely impact on consensus forecasts will be meaningful, but this is not a structural issue," Jefferies analysts said in a note.
Headwinds facing the aerospace industry include restricted production rates of Boeing's 737 MAX and Airbus' supply chain problems due to a shortage of parts.
Senior said these challenges have hit operations that are most exposed to these customers, both directly and through their Tier 1 suppliers.
Jefferies analysts said in their note that while Senior's shares have been weak for several weeks as the Boeing strike continued, the issues were "painful but temporary".
