Thousands of Boeing workers staged a strike outside the Renton, Washington facility on October 3, 2024, demanding a new labor contract. Meanwhile, Boeing’s new CEO, Kelly Ortberg, is steering the company through turbulent times as it faces significant financial challenges and is undergoing a strategic review to streamline operations. Ortberg highlighted the importance of focusing on Boeing’s core commercial aircraft and defense segments, aiming to do “less and better.”
The company reported a staggering $6 billion loss for Q3, amid ongoing cash burn expected to ease in late 2025. Revenue fell slightly to $17.8 billion, with major losses in its commercial and defense units due to delays in the 777X rollout and the 767 program, along with issues in the Starliner capsule. Ortberg, who recently took over in August, is determined to restore Boeing’s reputation and address safety concerns, notably after a safety incident with an Alaska Airlines flight.
Despite current challenges, Ortberg is optimistic about increasing production of the 737 Max post-strike. Boeing is negotiating with striking machinists, proposing a new contract with a 35% pay raise over four years. Ortberg emphasized the necessity of resolving the strike quickly, as it costs Boeing $1 billion per month and affects the broader aerospace supply chain.
Further, Ortberg announced a global workforce reduction of 10% and stressed the need for a leaner organization. He assured that Boeing’s commitment to building future aircraft in the Pacific Northwest would continue, which remains a critical point for union members following previous production shifts to nonunionized South Carolina. The labor vote results are anticipated soon, with optimism for a resolution.
Original Story https://www.cnbc.com/2024/10/23/boeing-ba-3q-2024-earnings.html
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