Boeing Plans to Cut 17,000 Jobs - 10% of Its Workforce (msn.com)
- Reference: 0175236875
- News link: https://tech.slashdot.org/story/24/10/12/0311232/boeing-plans-to-cut-17000-jobs---10-of-its-workforce
- Source link: https://www.msn.com/en-us/money/news/boeing-will-shed-17-000-jobs-as-finacial-woes-deepen/ar-AA1s7jMc
> Executives, managers and production employees will be affected by the cuts, chief executive Kelly Ortberg informed employees Friday in a memo. Boeing will also delay the launch of its 777X plane until 2026 due to ongoing challenges, Ortberg wrote... The layoffs add to the pain at Boeing, where a stalemate between the company's largest employee union dovetails with ongoing legal troubles and safety woes. The strike has halted production of some of the company's best-selling jets, further adding to its financial troubles. In the past five years, Boeing has lost more than $25 billion...
>
> "Our business is in a difficult position, and it is hard to overstate the challenges we face together," Ortberg said in the memo. "The state of our business and our future recovery require tough actions...." Now at risk of a downgrade to its credit rating as its circumstances worsen, Boeing has taken other steps to reduce expenses, including imposing a hiring freeze and eliminating unnecessary travel.
"The strike by Boeing machinists is costing the company roughly $1 billion a month, according to estimates from S&P Global..."
[1] https://www.msn.com/en-us/money/news/boeing-will-shed-17-000-jobs-as-finacial-woes-deepen/ar-AA1s7jMc
Meanwhile (Score:5, Insightful)
Meanwhile I'm sure those actually making the decisions for the company (and are therefore responsible for Boeing's rescent misfortunes) are still living quite comfortably, financially speaking.
Re: (Score:2)
Yes. see [1]https://www.cbsnews.com/news/b... [cbsnews.com] for the money Dennis Muilenberg pocked after he got fired as CEO.
The rot at Boeing starts with the BOARD OF DIRECTORS. It will take years to clean out the ranks of managers who have grown up in the "profit is everything" culture that started with the merger (leveraged takeover by) McDonnell-Douglas. "Flying Blind" remains a good but terribly depressing read: [2]https://www.amazon.com/gp/prod... [amazon.com]
Ortberg deserves a chance to make the change Boeing desperately needs,
[1] https://www.cbsnews.com/news/boeing-ousted-ceo-dennis-muilenburg-could-get-golden-parachute-with-26-5-million-payout/
[2] https://www.amazon.com/gp/product/B08P98854S
Re: (Score:2)
> It will take years to clean out the ranks of managers who have grown up in the "profit is everything" culture that started with the merger (leveraged takeover by) McDonnell-Douglas.
Ironic that the "profit is everything" model ends up eliminating profit.
A lot of the shine is off of MBA's and their Accountants, it is to be hoped that people come to understand that left to their own unrestrained devices, they end up destroying the companies they work for.
Re: (Score:2)
> Meanwhile I'm sure those actually making the decisions for the company (and are therefore responsible for Boeing's rescent misfortunes) are still living quite comfortably, financially speaking.
... not just financially speaking, being complete psychopaths they are living comfortably in all possible ways.
Financial Engineering On Display (Score:2)
Boeing has largely replaced their aircraft engineers with financial engineers, who excel at extracting wealth and expelling talent.
going bankrupt (Score:2)
Reports are they are likely to go bankrupt. If they do a restructuring hopefully they will get a lot of useless (and worse than useless) managers.
Re: going bankrupt (Score:2)
With the number of passengers Boeing killed, the company deserves a slow and torturous death.
Re: going bankrupt (Score:2)
I bought some Boeing stock last week. Just like when everyone was talking about Intel's demise I bought as well. Too big to fail. (for the record I think Boeing is a horrible company)
Re: (Score:2)
Intel stock isn't very good, unless you know how to time the market. Buying losing companies isn't a great stock strategy.
Re: going bankrupt (Score:2)
Buy corning in 2000 during their lawsuits for pennies and you'd be up a fortune.
Re: (Score:2)
Can't wait for Boeing's fall from greatness to be used as the Case study in how MBA's suck any value out of a company and run it into the ground.. Getting supper tired of the constant focus on short term profits screwing over the long term outlook and destroying the worker's lives.
Re: going bankrupt (Score:2)
Indeed... "Due diligence, taking responsability? That is not how a company works."
Fuck em. Let them eat their own shit. Don't help them out, do not overcompensate for them. Let them clean up their own mess. They may have to take more than one company down though. It is always someone else's fault.
Count me cynical.
Re: going bankrupt (Score:2)
The issue is short-term profit is what drives stock prices.
Re: going bankrupt (Score:2)
To clarify my comment, privately own companies can operate with a long term vision and not focus on their next earnings report.
Re: (Score:2)
it's never in a companies best interest to go public with stock .. this is just one of the many reasons why
Re: (Score:2)
> Can't wait for Boeing's fall from greatness to be used as the Case study in how MBA's suck any value out of a company and run it into the ground.. Getting supper tired of the constant focus on short term profits screwing over the long term outlook and destroying the worker's lives.
While Boeing is deservedly being pilloried for their MBA/Accountant caused disaster, it turns out that Airbus, while seemingly golden and trouble free, has just as many issues, and has killed their share of humans. Very often shitty software, but other reasons as well.
We just don't see as much of it because their country doesn't air their dirty laundry like the USA does.
Re: (Score:3)
"what about" is'ms doesn't have a place in reality checks - just means both have issues, not a justification for having them.
Re: (Score:2)
> "what about" is'ms doesn't have a place in reality checks - just means both have issues, not a justification for having them.
Whataboutisms? I had no idea that mentioning that airplane companies could only mention Boeing. The point i fyou missed it is that we can put Boeing out of business, have a good old fashioned crucifixion of all management, and dump all their product into th Marianas trench, and planes will still fall out of the sky.
Thanks for setting me straight. I shall only comment on Boeing from now on. Let's try it!
Fucking Boeing is the cancer of the industry - they need put out of business now before they kill more
Re: (Score:2)
not trying to "set you straight" but you did try to imply i wasn't aware of air bus's failings. so pick a path.
if you want to debate Airbus vs. Boeing lets go - your brought up the safety record - also not the topic i was talking about ..
So what do you want to discuss/cross compare between them?
Re: (Score:2)
> we can put Boeing out of business, have a good old fashioned crucifixion of all management, and dump all their product into th Marianas trench, and planes will still fall out of the sky.
Not for long. About the time management at these companies started getting crucified for decisions that killed people, the remaining management would finally have the incentive needed to shift their focus to quality instead of short term profits.