Boeing's Strategic Reshuffle Amid Workforce Reductions

Boeing CEO Kelly Ortberg announced repayment for furloughed employees but continued with a 10% global workforce cut amid financial challenges. The machinist strike concluded with a pay hike, yet production delays of the 737 MAX persist. Boeing aims to ensure competitiveness via strategic realignment.

Boeing CEO Kelly Ortberg has pledged to compensate employees furloughed during a recent strike, despite the company's plans to reduce its workforce by 10% globally. Ortberg stated that these structural changes are crucial for maintaining Boeing's competitiveness amid ongoing financial challenges.

The machinist strike, which concluded with an agreement that includes a 38% pay increase over four years, halted production of the 737 MAX. Despite employees' return, Boeing has yet to announce a definitive timeline for resuming production.

With financial issues mounting, including $8 billion in losses this year, Boeing raised $24 billion last month to stabilize its finances. Ortberg is reviewing the company's operations and may consider selling assets to refocus on core business areas.

(With inputs from agencies.)