Boeing Plans to Cut 17,000 Jobs - 10% of Its Workforce (msn.com) 32
"Boeing said Friday it will cull 10 percent of its workforce — roughly 17,000 jobs," reports the Washington Post, "as the aviation giant grapples with mounting losses and manufacturing disruptions amid a machinists strike that has dragged into a fifth week."
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..."
"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..."
going bankrupt (Score:2)
Re: going bankrupt (Score:2)
Re: going bankrupt (Score:3)
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Re: going bankrupt (Score:2)
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Boeing you are absolutely right (Score:3)
I don't think it's going to happen right away and it may never happen but it's definitely something to watch out for. And Intel really needs good r&d to keep up and their slashing costs for short-term gains.
Re:going bankrupt (Score:4, Interesting)
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)
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)
Re: going bankrupt (Score:2)
Re: going bankrupt (Score:2)
So, where's Warren Buffett right now?
His claim to fame is to acquire companies, have them put together a long term operating plan and let them work to that without the quarterly Wall Street whining.
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it's never in a companies best interest to go public with stock .. this is just one of the many reasons why
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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.
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"what about" is'ms doesn't have a place in reality checks - just means both have issues, not a justification for having them.
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"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
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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?
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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.
There aren't any useless managers (Score:1)
So you'll find a bunch of people who have manager in their title but they're doing line work instead of managing employees.
The only useless managers left are in the upper management whose job is to hire the strike breaker
Re: There aren't any useless managers (Score:2)
Management is a place to put the fuck-ups [wikipedia.org].
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If that happens, the Federal Government should do the same thing it did to GM after GM went bankrupt. It organized a new company which bought up all the parts of GM which were critical to the national economy, including the "General Motors" name, all its brands, even the stock ticker symbol. The old company that *was* GM was renamed "Motors Liquidation Company", which became a trust which used the revenue from asset sales to settle with creditors.
From the outside it looked like GM simply carried on, but u
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.
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Yes. see 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: https://www.amazon.com/gp/prod... [amazon.com]
Ortberg deserves a chance to make the change Boeing desperately needs,
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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.
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That is going to require some degree of regulatory action because as was just laid out the people behind these decisions don't suffer any consqeuquences so obviously we have an area of misaligned incentives.
Every bad decision at Boeing came from a person, like pointed out Dennis Muilenberg, he suffers really no consequences. Even if he wanted to keep working does anyone have any doubt whatsoever he could easily slot himself into the board or C class of another company?
We've seen it time and time again, onc
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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.
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I bet all the non-retired McDonnell-Douglas employees remain in their jobs and continue to fuck the whole thing up. It's almost like revenge for being bought out... who really took over who?
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The interesting/disturbing thing is that many of the bad managers at Boeing were not legacy McD. Dennis Muilenberg was legacy Boeing, but was turned to the Dark Side by people like Stonebraker and the profit-focused culture they instituted. And that's why the BoD should be replaced. See https://www.boeing.com/company... [boeing.com]
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Stonecipher, not Stonebraker. Sorry! https://en.wikipedia.org/wiki/... [wikipedia.org]
We all know this we never do anything about it (Score:2)
But if a girl with blue hair gives us a c on our homework assignment in college we carry that with ourselves for the rest of our lives...
I think the problem is human beings aren't designed for this giant global economy. It's very difficult to think in terms of anything at that scale.
I realized years ago dog eat dog capitalism doesn't work but it took me
Financial Engineering On Display (Score:4, Insightful)
Boeing has largely replaced their aircraft engineers with financial engineers, who excel at extracting wealth and expelling talent.
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Mod parent funny-not-funny but I thought the story had much more potential for humor.