Boeing's New CEO Tackles Losses and Strikes

Boeing’s new CEO, Kelly Ortberg, has big plans to turn things around. He wants the company to be leaner and make higher-quality planes. But right now, Boeing is facing a big problem: a strike by thousands of workers. These machinists are upset about their contract and have been picketing outside a Boeing factory in Washington. Boeing just reported a big loss of over $6 billion for the third quarter of 2024. This is the worst loss since the pandemic in 2020. The company made $17. 8 billion in revenue, which is a tiny bit less than last year. Boeing ended the quarter with $10. 5 billion in cash. Analysts expected Boeing to lose $10. 52 per share, but the actual loss was a bit less, at $10. 44 per share. Boeing’s cash flow was also negative, with a $1. 3 billion outflow. Ortberg used to be the CEO of Rockwell Collins and started at Boeing in August. He has a tough job ahead: fixing quality issues and restoring Boeing’s reputation. Recently, a door on a Boeing plane almost blew off, causing safety concerns. Ortberg plans to cut 10% of Boeing’s global workforce, which is about 17, 000 people. He wants Boeing to be smaller and more focused. The strike in Seattle is a big issue. Over 32, 000 workers walked off the job in September. The new contract offer includes bigger raises and better benefits. The strike costs Boeing $1 billion each month. It’s important to end the strike quickly because it affects the whole aerospace supply chain. Boeing promises to build its next plane in the Pacific Northwest, which should make the union happy. Analysts think the new contract will be accepted. The vote results are expected late on Wednesday.