Delhi Delhi. Boeing CEO Kelly Ortberg outlined an immediate turnaround strategy on Wednesday as the aerospace giant reported a staggering $6 billion quarterly loss, largely due to a lengthy strike that has severely disrupted production. Have done. The company has accumulated losses of nearly $8 billion this year, exacerbated by a halt in manufacturing of its 737 MAX, 777 and 767 planes, as well as challenges at its defense and space division.
In premarket trading, Boeing shares fell 1% as investors reacted to disappointing financial results. In his first earnings call as CEO, Ortberg stressed the need for “fundamental culture change” within the company, which he described as “at a crossroads” after significant performance misses that disappointed customers and Decreased trust.
“This is a big ship that will take some time to turn, but when it does, it can be great again,” Ortberg told employees in a letter. His comments follow earlier announcements of deep workforce reductions as some 33,000 workers are on strike at Boeing, significantly impacting production of its best-selling planes.
Ortberg expressed hope that a new contract proposal, on which striking workers were voting on Wednesday, will be approved, although analysts are uncertain about the outcome. The plane maker is grappling with the implications of a regulator-imposed production cap on the MAX after a disturbing incident involving a door panel burst mid-air.
During discussions with senior executives, Ortberg highlighted the need for better collaboration and problem solving within the company. “We need to work together to prevent problems from escalating and to identify, fix and understand the root causes,” he said, introducing a more rigorous business cadence to facilitate this cultural shift.
Even if the strike ends, Ortberg acknowledged the complexities involved in restarting production, especially in view of ongoing supply chain difficulties. He cautioned that “it's much harder to turn on than to turn off”, citing the challenges facing factories and suppliers, who have recently furloughed workers and postponed investment.
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