Boeing in Crisis: A New Attempt for the Aircraft Manufacturer

Boeing, a symbol of American manufacturing, is currently lurching from one crisis to another in an alarming succession of challenges. A recent example is the ongoing strike, now entering its second month, further crippling the manufacturer's production. These issues exacerbate Boeing's already existing financial distress, as cash reserves dwindle and the annual stock performance heads towards the worst since 2008. The recently announced measures by the new CEO, Kelly Ortberg, who was brought out of retirement in August, show a clear intent to restructure. After two months in office, Ortberg has already replaced the head of the Defense and Space division and is attempting to negotiate a higher wage agreement directly with the workers, which, however, has further intensified the conflict. His latest decision involves laying off 10% of the workforce, about 17,000 employees, to focus resources on the company's core competencies. Boeing is under immense pressure, not least because rating agencies have warned the company that it could fall below investment grade. This downgrade could make Boeing the largest "fallen angel" in the history of US corporations. The company's problems seem intertwined, creating a kind of "doom loop." Boeing is compelled to take significant steps to strengthen high-revenue core areas and potentially abandon unprofitable business segments. Despite the challenges, CEO Ortberg appeals to a sense of community and shares the hardships by taking salary cuts alongside the workforce, while simultaneously announcing drastic measures like mass layoffs to overcome the crisis. However, while Boeing and the union are in the midst of negotiations, it remains unclear how these developments will affect the company's recovery. What is certain is that many significant obstacles still need to be overcome to get the aviation giant back on track.