Boeing IS in Deep Trouble….

A Strike….

Losing Money….

And a annoiucment of 10% job cuts probably to pay for any increased salaries to end the strike….

A a rash of quality control problems on its commerical aircraft….

And problems making aircraft for the US Military including a new Air Force One….

 

Boeing’s new chief executive on Friday announced plans to reduce its work force by 10 percent, or about 17,000 jobs, as he seeks to restructure the company in an effort to slash costs and improve production of planes, which has been plagued by numerous delays.

Kelly Ortberg, who became chief executive in August, told employees in a memo that Boeing, which last reported an annual profit in 2018, faced big problems and needed to change how it did business in ways that play to its strengths.

The announcement on Friday comes as the company deals with a costly and disruptive strike that began nearly a month ago, when members of its largest union rejected a contract offer and walked off the job. The union, the International Association of Machinists and Aerospace Workers, represents more than 33,000 Boeing employees.

Boeing on Friday also reported $5 billion in new costs associated with several commercial and defense programs….

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Boeing announced a similarly large percentage cut in April 2020, when air travel fell about 90 percent as the coronavirus pandemic took hold. At the end of that year, Boeing employed 141,000.

Mr. Ortberg, a former top executive at Rockwell Collins, a major aerospace supplier, said Boeing would also change its product lineup and adjust its schedule for selling new jets. It will do away with the 767 freighter, an older model, after fulfilling more than two dozen outstanding orders. He also confirmed that the company would deliver its first 777X, a large plane designed for international travel that has been delayed repeatedly, in 2026, a year later than had previously been expected. When Boeing started the 777X program, in 2013, it slated the first delivery for 2020.

Mr. Ortberg also said that he expected additional losses from a handful of already-costly defense products that Boeing had agreed to build at a fixed price. Those programs have weighed heavily on the company’s finances in recent years, as supply chain challenges mounted and prices rose rapidly….

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