Boeing CEO Calls for Cultural Overhaul Amid Mounting Losses

Boeing CEO Kelly Ortberg announced plans for a cultural transformation to address the company's $8 billion losses following a strike and ongoing production issues. The plan aims to stabilize operations, improve defense business performance, and restart halted aircraft production while engaging employee support.

Boeing CEO Kelly Ortberg unveiled a strategic plan on Wednesday, emphasizing a 'fundamental culture change' as the company grapples with $6 billion in quarterly losses, exacerbated by a crippling strike. The planemaker seeks to recover from nearly $8 billion in total losses this year.

Ortberg highlighted the urgent need to improve performance in Boeing's defense sector and the 737 MAX and 777 programs. With production halted, Boeing is at a 'crossroads' due to recent performance lapses that have disappointed customers and eroded trust.

As Ortberg rally's employees, a proposed new contract is under consideration by striking workers, with its outcome critical to the planemaker's recovery efforts. However, reinitiating production will be challenging due to ongoing supply chain issues.

(With inputs from agencies.)