November 22, 2024 – Following a company-wide meeting on November 20th, Boeing CEO Kelly Ortberg expressed concerns regarding the company’s deep-seated cultural issues, stating that it cannot afford to make any further mistakes. In his address, Ortberg pointed out the bloated management structure, wasteful spending, and a culture of internal strife and blame-shifting within the organization.
According to reports, Ortberg, who took office in August this year, held a company-wide meeting lasting an hour on Wednesday. He emphasized that Boeing has been spending more time on internal debates rather than focusing on strategies to compete with Airbus. Ortberg admitted that everyone, including himself despite his short tenure, is tired of the discourse on what’s wrong with Boeing.
Ortberg stated that Boeing’s cash flow will only turn positive when the monthly production of 737 aircraft reaches the target of 38, which was originally planned to be achieved by the end of 2023. He further added that the company currently does not have the funds to initiate new aircraft projects, although there is no urgent need for new ventures at the moment.
Previously, Boeing announced plans to lay off approximately 17,000 employees, representing 10% of its total workforce. The company stated that the layoffs would affect employees across all levels, including executives, managers, and other staff.
In a statement released on Monday, Boeing said it is “adjusting our workforce to align with our financial realities and more focused priorities. We are committed to ensuring that our employees are supported during this difficult time.”
Boeing further clarified that most of the recently laid-off employees will leave the company by mid-January next year. The affected employees will receive severance packages, career transition services, and medical subsidies for up to three months after their departure.
