Call for Unity and Action
Boeing CEO Kelly Ortberg has issued a strong message to employees, urging them to shift focus from internal disputes to tackling competitive challenges, particularly against rival Airbus. Speaking during an hour-long town hall meeting on Wednesday, Ortberg expressed frustration with the company’s internal discord, according to a recording obtained by The Wall Street Journal (WSJ).
“We spend more time arguing amongst ourselves than thinking about how we’re going to beat Airbus,” Ortberg reportedly said. He emphasized the need for employees to stop complaining and concentrate on productive strategies. “Let’s focus on the task at hand,” he added, urging staff to abandon negative conversations at “the water cooler.”
Boeing CEO Kelly Ortberg, who assumed leadership in August, acknowledged the weariness surrounding criticisms of Boeing. “Everybody is tired of the drumbeat of what’s wrong with Boeing. I’m tired of it, and I haven’t been here that long,” he said.
Challenges Facing Boeing
Ortberg’s tenure has been marked by significant challenges, including a seven-week workers’ strike and substantial financial losses. Adding to these woes, Boeing has faced a nearly 40% decline in its stock price since the beginning of the year. Ortberg also highlighted concerns about potential trade wars, particularly with China, following President-elect Donald Trump’s proposed 60% tariffs on imports. Boeing’s exports to Chinese airlines could face significant risks if these tariffs are implemented.
In addition to external pressures, Boeing is undergoing extensive workforce reductions. In October, the company announced plans to cut 10% of its global workforce, which includes 2,199 layoffs in Washington and 50 in Oregon. These cuts also affect 438 members of the Society of Professional Engineering Employees in Aerospace (SPEEA). In an earlier note to employees, Ortberg described the decisions as tough but necessary, citing the company’s “difficult position.”
Glimmers of Optimism
Despite the turbulence, there are signs of recovery for the embattled aerospace giant. Boeing has resumed production of its 737 Max airplanes and recently secured its first major order since the workers’ strike. On November 12, Avia Solutions Group announced an order for 80 Boeing 737 Max planes, signaling renewed confidence in the company’s products.
Boeing CEO Kelly Ortberg remains optimistic about Boeing’s future, stating in the company’s third-quarter report that restoring the firm’s legacy will take time but is achievable. “With the right focus and culture, we can be an iconic company and aerospace leader once again,” he said.
Boeing’s leadership is determined to steer the company through its current challenges and reclaim its position as a dominant force in the aerospace industry, though achieving this will require a unified workforce and strategic focus.
