By outdoor-nature-child.com In a recent interview, Kelly Ortberg, the CEO of Boeing, discussed the significant challenges facing the aerospace giant as the company grapples with a staggering $6 billion quarterly loss, primarily due to an ongoing worker strike that has now entered its fifth week.
Ortberg emphasized the need for a “fundamental” transformation in the company’s culture as Boeing reported core operating losses of $5.99 billion for the quarter ending September 30, a sharp increase from $1.09 billion during the same period last year. Revenue also saw a slight decline of 1%, totaling $17.8 billion.
As around 33,000 Boeing workers in Washington and Oregon prepare to vote on a new contract, which proposes a 35% wage increase, Ortberg remains hopeful that this could signal an end to the crippling industrial action that has plagued the company. He acknowledged the profound impact of recent events on Boeing, including a cabin panel incident involving a new Max jet in January that raised serious safety concerns among regulators, airlines, and passengers.
Addressing the myriad issues facing the firm, Ortberg identified three primary challenges: a loss of trust in the company, excessive debt, and “serious lapses” in performance that have disappointed customers. He noted that Boeing’s defense division is also under significant strain, as evidenced by the botched mission involving its Starliner spacecraft.
“This is a big ship that will take some time to turn, but when it does, it has the capacity to be great again,” Ortberg stated, reflecting on the potential for growth despite significant hurdles ahead. He highlighted the importance of executives being “closely integrated” with operations on the ground, stressing the necessity of understanding not just the products but also the people working within the company.
“We need to prevent issues from festering and work together to identify, fix, and understand the root causes,” he added. As he continues to face heightened scrutiny, Ortberg encouraged employees and investors to evaluate his leadership based on tangible results rather than intentions, promising to be “relentless” in driving a cultural shift through actionable steps.
Boeing workers, represented by the International Association of Machinists, were voting on the proposed four-year contract. Ortberg expressed optimism regarding its approval, stressing the urgency of reconnecting with the team and restoring the company’s stability. He acknowledged that while reaching an agreement would be a positive step, the road ahead remains challenging, requiring efforts to stabilize the business, improve execution, streamline operations, and restore a healthy balance sheet to pave the way for future commercial projects.
On a related note, Boeing’s shares dropped over 1% in early trading in New York, reflecting the ongoing concerns regarding the company’s financial health and operational challenges.