Boeing CEO: ‘We are at a low point … We spend more time arguing amongst ourselves’
Nov 21, 2024, 11:39 AM
The Boeing production floor in Everett. Insert: Boeing CEO Kelly Ortberg. (Getty Images)
(Getty Images)
Despite the end of a contentious machinist’s strike, told employees this week, “We are at a low here, folks … We spend more time arguing amongst ourselves than strategizing on how to outpace Airbus.”
The comments were made at Boeing’s Seattle delivery center and reported by the and
Ortberg, who began in August, told the all-hands meeting that Boeing has serious culture problems and can鈥檛 afford another mistake.
鈥淒on鈥檛 sit at the water cooler and bitch about people,鈥� Ortberg said. 鈥淟et鈥檚 focus on the task at hand.鈥�
More Boeing news: Company lays off nearly 2,200 people in Washington, state reports
Boeing shares have dropped nearly 44% this year, in contrast to the S&P 500 index’s 24% gain.
“Everyone is weary of the constant focus on ‘what’s wrong with Boeing?’ I’m tired of it and I haven’t been here that long,” Ortberg explained.
Boeing is grappling with several significant challenges: The company has faced ongoing technical and production problems with its 787 Dreamliner, leading to delays and quality control issues.
The company continues to be under intense regulatory scrutiny, particularly following the 737 MAX incidents. The Federal Aviation Administration (FAA) has closely monitored Boeing’s manufacturing processes.
Boeing is also dealing with substantial financial pressures, including a high burn rate of cash and the need to ramp up production to achieve positive cash flow. Boeing’s order backlog was $511 billion at the end of September, including over 5,400 commercial airplanes.
Economist: Boeing contract will have big impact on housing in Western Washington
The company is also dealing with supply chain disruptions, which the COVID-19 pandemic and ongoing global issues have exacerbated.
Analysts said the company is burning through billions of dollars and won’t achieve positive cash flow until production ramps up. Boeing faces stiff competition from Airbus, which is challenging its market share.
Ortberg has had recent discussions with President-elect Donald Trump about the potential impact of tariffs on the company. A trade war with China could significantly affect Boeing, as it sells airplanes to Chinese airlines and the U.S. does not import aircraft from China.
Ortberg previously led Boeing supplier Rockwell Collins and managed its integration with United Technologies and RTX before retiring in 2021.
Bill Kaczaraba is a content editor at MyNorthwest. You can read his stories here. Follow Bill on X, formerly known as Twitter, and email him here.听
