Boeing Will Cut 17,000 Jobs in Bid to Slash Costs

[Zorro]

Source: New York Times

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.

Read more: https://www.nytimes.com/2024/10/11/business/boeing-job-cuts.html?ogrp=ctr&unlocked_article_code=1.Rk4.eAA_.Xu79AdT4RfeQ&smid=url-share

[Mister Ed]

1. I wonder if any of them will be the top execs who've so badly mismanaged the company. n/t

[Metaphorical]

2. Hmmm

So the union has 33,000 employees that just won some major concessions, and 17,000 jobs are being cut. I wonder where those job cuts are going to come from?

What is it about incoming big corporate CEOs that their first order of business is to axe the workforce, usually at the level of the technicians and support personnel, while keeping in place the mid to upper level management structure that made the bad decisions in the first place?

[RainCaster]

3. Boeing has had its credit downgraded

This is a big mess for the Lazy B Airplane Ranch.

[progressoid]

4. So in order to improve production and reduce delays, you're gonna fire 10% of your employees.

This should be interesting.

[Xolodno]

5. Saw it coming.

Might be a bit top heavy, too many middle managers. In good times, companies can promote a bit too much. To the point its detrimental to production, morale, etc. When I saw the proposed wage increases I figured they already decided they were going to downsize. And with a third CEO in five years, this last one came in specifically to be the bad guy to eliminate management positions. Even some top exec's may get the axe, depends on the severance package.

Plus competition with Airbus and soon Chinese and Russian homegrown civilian airline companies is going to leave them a smaller portion of the pie. Probably why they tried to get into the Space business, but that was over budget and behind schedule. And still had problems with a deliverable. Years of mismanagement from a company they bought who took over a lot of the executive roles didn't do them any favors. Sometimes a merger isn't a good thing and you absorb the bad habits of the other company.

[Snoopy 7]

6. I think I know why boeing isn't making any money (lol)

Here are just a few story headlines:

Robert Reich - Boeing's failed CEO will get a "golden...
Boeing's failed CEO will get a "golden parachute" worth as much as $45 million. The CEO before him got $62 million on his way out the door. If you got fired ...

Robert Reich - And in 2020, former Boeing CEO Dennis...
Former Boeing CEO Dennis Muilenburg received a $62 million golden parachute on his way out the door after failing to handle other safety problems at the ...

Boeing Leaders' Windfall Predates New Safety Goals Tied ...

Disgruntled Boeing investors take aim at $33 million pay ...
May 17, 2024 — Boeing shareholders pulled no punches at the aviation manufacturers' shareholder meeting on Friday, asking the board how it could justify the CEO's $33 million ...

Boeing Workers Strike As Disastrous CEO Gets Golden ...
The employees are fighting for better wages after the company gave a golden parachute to their forms former CEO. He's bankrupt this company.

Boeing shareholders greenlight CEO's golden parachute ...

Bilyonaryo Business News
https://bilyonaryo.com › 2024/05/18 › travel
May 18, 2024 — Boeing shareholders voted Friday to back outgoing CEO Dave Calhoun's pay deal and reelection to the board, in an endorsement of company leadership.
Boeing's ousted CEO could get $26.5 million golden ...

CBS News
https://www.cbsnews.com › news › boeing-ousted-ceo-...
Dec 23, 2019 — Muilenburg, who exited the company on Monday, is in line to receive $26.5 million in cash and stock as part of his exit package from the top job ...

Boeing's failed CEO will get a "golden parachute" worth as much as $45 million. The CEO before him got $62 million on his way out the door. If you got fired for poor performance at your job, what do you think you would get? I understand the CEO getting a significantly higher wage but it doesn't have to be astronomical!

$32.77 million
What is Dave Calhoun's salary as Boeing CEO? According to Nasdaq, Calhoun's 2023 compensation totaled $32.77 million, up 45% from the year before. He received $1.4 million in base salary, $30.23 million in stock awards, and an additional $1.14 million in other compensation.Jul 24, 2024

I wonder why boeing is loosing money? Ever since deregulations began, since the days of "saint regan", ceo's have been bankrupting companies while they walked away with million dollar golden parachutes.

[travelingthrulife]

7. So they feudal owners looted the company for stock buy backs and unearned

rewards while the workers get the shaft once again. Will any of the incompetent leadership be let go?

[Stargazer99]

8. Capitalism is an evil system for workers but who is analyzing this?

[PortTack]

9. Great...expect more airline disasters.

[Zorro]

10. Next step

Move more manufacturing from Renton to the non-union Boeing South Carolina facility.

[Metaphorical]

13. i suspect the move is already underway

The writing on the wall to me came when they moved Boeing corporate headquarters to Chicago from Seattle, about the time they acquired McDonnell Douglas. It became very obvious at that time that the company had essentially morphed into a too-big to fail feifdom which is now, ironically, failing. However, those big stockholders have to be kept happy, dontcha know.

[Zorro]

14. Heard on CBS news tonight bankruptcy may be an option

[Yo_Mama_Been_Loggin]

11. Boeing has spent over $90 billion on stock buy backs over the last decade

They could have spent a fraction of that on wages and plant upgrades then they wouldn't have the worker unrest they're going through now.

[NowsTheTime]

12. A few more bucks on quality would't have hurt either..