Boeing in Troubles
Saturday, October 12th, 2024
Boeing Faces More Troubles Ahead
CNBC
Boeing, the aerospace giant, is facing significant challenges as it announces plans to cut approximately 17,000 jobs, representing 10% of its workforce. This drastic measure comes amid deepening financial losses and an ongoing machinists' strike that has entered its fifth week, halting production at Boeing's aircraft factories. The company also revealed it would delay the launch of its new 777X wide-body planes until 2026, citing development issues. These decisions were outlined in a staff memo by CEO Kelly Ortberg, who emphasized the difficult position of the business and the need for structural changes to maintain competitiveness.
The company's financial outlook appears grim, with Boeing expecting to report a loss of $9.97 per share in the third quarter, including significant charges in both its commercial and defense divisions. The ongoing strike is estimated to be costing Boeing over $1 billion per month, further straining its finances. Adding to the company's woes, tensions between Boeing and the International Association of Machinists and Aerospace Workers have escalated, with Boeing filing an unfair labor practice charge against the union. These developments mark a challenging period for new CEO Kelly Ortberg, who is tasked with stabilizing the company following a series of safety and manufacturing crises.
Poetry For the Weekend
Give All to Love by Ralph Waldo Emerson
Have a delightful weekend! Cheers!