Boeing struggles with financial losses amid ongoing crisis
- Boeing is facing massive financial losses, reporting over $33 billion in core operating losses over the past six years.
- The company is currently in a month-long strike involving 33,000 workers, which has halted commercial airplane production.
- To address its financial crisis, Boeing plans to borrow $10 billion and raise $25 billion, while also cutting 10% of its workforce.
Boeing, facing severe financial difficulties, is attempting to raise significant capital amid ongoing challenges. The company has reported core operating losses exceeding $33 billion over the past six years, exacerbated by a crippling strike involving 33,000 members of the International Association of Machinists. This strike has halted commercial airplane production, further straining Boeing's financial situation. In response, Boeing's new CEO, Kelly Ortberg, announced plans to reduce the workforce by 10%, impacting its global staff of 171,000. The company is now seeking to borrow $10 billion from a consortium of banks and plans to raise an additional $25 billion through stock and debt sales. The breakdown of negotiations with the IAM last week leaves the company in a precarious position, with no immediate resolution in sight. As Boeing navigates these turbulent waters, the implications for its future operations and financial stability remain uncertain.