October 12th 2024.
Boeing, a major plane manufacturer, is facing a number of challenges that are impacting its business. As a result, the company has announced that it will be laying off 17,000 employees and delaying projects. In an email to employees, Chief Executive Kelly Ortberg explained that these cuts are necessary to align with the company's financial reality.
Over the next few months, Boeing plans to reduce its workforce by approximately 10%. This will include reductions at all levels of the company, including executives, managers, and employees. Ortberg also mentioned that more specific information about the impact on each organization will be shared by leadership in the coming week. Additionally, due to these layoffs, there will no longer be a need for the previously planned furloughs.
With approximately 170,000 employees worldwide, Boeing's decision will have a significant impact. Ortberg acknowledged this and expressed his regret that such actions had to be taken. However, he also stressed that the future of the company depends on making tough decisions.
Boeing's stock has been declining this year, with a 22.98% decrease in the past year. The company is facing concerns over the safety and quality of its aircraft, following incidents such as a cabin panel blowout and a problem with a spacecraft. These issues have led to a delay in the delivery of the 777X aircraft to 2026 and a temporary pause in flight testing.
Boeing is set to release its third quarter results on October 23, with projected figures of $17.8 billion in revenue, a GAAP loss per share of $14.77, and an operating cash flow of $1.9 billion. However, these numbers have been impacted by the ongoing strikes by the International Association of Machinists and Aerospace Workers. More than 33,000 employees have been on strike for several weeks, rejecting a tentative contract that did not meet their demands for a 40% pay raise over three years.
Ortberg admitted that the company is facing a difficult position and that the challenges they are facing cannot be overstated. In order to recover, tough decisions will have to be made and structural changes will need to be implemented to ensure long-term competitiveness and success. To stay updated on all the latest news, celebrity updates, and sports updates, follow our WhatsApp channel for real-time updates without any comments or algorithms.
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