Boeing reports $6 billion loss in 3Q 2024, CEO aims to cut workforce and improve quality

From CNBC: 2024-10-23 07:49:46

Boeing’s new CEO, Kelly Ortberg, aims to make the company leaner and improve quality as workers picket during a strike in Renton, Washington. The company reported a $6 billion loss in the third quarter, showing a decrease in revenue and cash outflow. Ortberg plans to slash the global workforce and address safety concerns to restore Boeing’s reputation.

The labor strike, involving over 32,000 machinists, costs Boeing $1 billion a month. The striking workers will vote on a new proposal offering 35% raises over four years, among other benefits. A quick resolution is vital for the aerospace industry’s delicate supply chain. Ortberg is keen on building the next aircraft in the Pacific Northwest to mend relations with unionized machinists.

Analysts are hopeful the labor deal will pass, with results expected Wednesday night. Ortberg seeks to prioritize and create a more focused organization by addressing issues comprehensively and collaboratively. With the strike causing significant financial strain, reaching a swift resolution is crucial for the company’s stability and future projects.



Read more at CNBC:: Boeing (BA) 3Q 2024 earnings