Has faced major financial losses
Boeing has faced major financial losses in recent years, worsened by two fatal 737 Max 8 crashes since 2018, the company’s last profitable year. A recent 737 Max door panel incident raised further safety concerns. The company recently delayed delivery of the 777X to 2026 and ended 767 Freighter production by 2027.
In this gallery, we assess Boeing’s latest decisions amidst a five-year-long struggle.
Announced layoffs
Boeing recently announced layoffs for around 17,000 employees. This came following the return of 33,000 machinists from a seven-week strike. Executives, managers, and various employees will be affected, but aircraft production workers were mostly spared. “I think that we’re better off doing less and doing it better than doing more and not doing it well,” Boeing CEO Kelly Ortberg said.
Prior business practices
The decision has raised significant concerns among employees and stakeholders. Boeing has faced ongoing scrutiny from regulators, as well as the public, over safety protocols and prior business practices.
In a difficult position
Ortberg stated, “Our business is in a difficult position, and it is hard to overstate the challenges we face together. Restoring our company requires tough decisions, and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term.”
Halted production from the strike
Boeing faced nearly $8 billion in losses in 2024 due to halted production from the strike, as well as issues in its defense division. CFO Brian West has projected continued cash burn into 2025.
Operations to rebuild
Production targets for the 737 MAX have been delayed due to the strike, and operations to rebuild will be challenging amid supply chain issues.
Reset our workforce levels
Ortberg said, “We must reset our workforce levels to align with our financial reality and to a more focused set of priorities. Boeing will “maintain our steadfast focus on safety, quality and delivering for our customers,” he added.
Credit rating
Running Point Capital Advisors partner Michael Ashley Schulman stated, “Their credit rating and share price has been at risk for the better part of a decade because of mismanagement and the stubbornness displayed in the strike may be the straw that breaks the camel’s back.”
Path to recovery
Ortberg stated, “We need to be clear-eyed about the work we face and realistic about the time it will take to achieve key milestones on the path to recovery.”
Need to focus
Ortberg added, “We also need to focus our resources on performing and innovating in the areas that are core to who we are, rather than spreading ourselves across too many efforts that can often result in underperformance and underinvestment.”