Boeing to cut 17,000 jobs, delay 777X delivery, record $5 billion Q3 losses.

From Investing.com: 2024-10-11 19:56:39

Boeing to cut 17,000 jobs, delay 777X deliveries by a year, and record $5 billion in Q3 losses due to ongoing strike. CEO Ortberg says job cuts are necessary for financial alignment following strike halting production of jets. Shares fell 1.1% after-hours. Expect $5 billion pre-tax earnings charges reported for defense business and commercial programs.

Analysts predicted Boeing Q3 earnings to report a revenue of $17.8 billion, a loss per share of $9.97, and a negative operating cash flow of $1.3 billion. Layoffs may pressure workers to end strike and reach a deal. Strike costs Boeing $1 billion monthly, risks credit rating, and affects 777X launch.

Boeing to end 767 freighter program in 2027, continue KC-46A Tanker production. Jobs cuts lead to ending furlough program for salaried employees. Boeing had been burning cash before strike from plane safety issues. Facing court hearing for guilty plea to fraud, with $487.2 million fine and safety improvements.

FAA not effective in overseeing Boeing production. Boeing explores options to raise billions through stock and equity-like securities. Estimated to need $10-$15 billion to maintain ratings. Analysts are not surprised by Boeing’s downsizing and delayed deliveries due to cash and credit issues.



Read more at Investing.com: Boeing to cut 17,000 jobs and delay first 777X delivery as strike hits finances By Reuters