October 12th 2024.
Boeing, one of the world's leading plane-makers, has announced some major changes to their operations. The company will be laying off 17,000 employees and delaying projects in order to address the various challenges they are currently facing in their business. In an email to employees, Chief Executive Kelly Ortberg explained that these actions are necessary in order to align with their financial reality.
Over the next few months, about 10% of Boeing's total workforce will be reduced, including executives, managers, and other employees. This decision also means that they will not be proceeding with the previously planned furloughs. While this news may be difficult for employees and their families, Ortberg emphasized that these tough actions are necessary for the future recovery of the business.
Boeing currently employs around 170,000 workers globally and has been facing declining stock prices this year. The company has also been dealing with safety and quality concerns regarding their aircrafts, such as a cabin panel blowout and a spacecraft issue that left NASA astronauts stranded in space. These challenges have added to the company's already struggling financial situation.
Boeing is set to release their third quarter results on October 23 and is expecting a revenue of $17.8 billion, a GAAP loss per share of $14.77, and an operating cash flow of $1.9 billion. These figures have been impacted by the ongoing strike of more than 33,000 machinists who are demanding a 40% pay increase over three years. The strike has also caused delays in the delivery of the company's 777X aircraft and a pause in flight tests.
Ortberg acknowledged that these challenges have put the company in a difficult position and that tough decisions need to be made in order to ensure their long-term competitiveness and ability to deliver for their customers. He also mentioned that the upcoming changes will be difficult for everyone involved and that he wishes they could have been avoided. However, he stressed the importance of taking these actions in order to secure the future of the business.
In addition to these changes, Boeing has also launched a new WhatsApp channel for their customers to stay informed about the latest breaking news, celebrity updates, and sports news. This channel promises a more private and personalized experience for users without any comments or algorithms. Customers can subscribe to this channel to stay updated on all things related to Boeing.
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