Boeing is currently facing a labor strike and financial challenges. The International Association of Machinists and Aerospace Workers District 751 has rejected Boeing's latest contract proposal. Over 32,000 machinists are voting on the new offer.
The strike has halted most of Boeing's production and has led to a cash burn of approximately $8 billion in the first half of the year. The aerospace industry is also feeling the effects of the strike, with suppliers like Spirit AeroSystems announcing temporary furloughs. The ongoing strike is estimated to cost Boeing $1 billion per month.
New CEO Kelly Ortberg is set to outline his vision for the company during his first earnings call. Ortberg has indicated that the company will reduce its global workforce by 10%. Boeing's financial outlook remains precarious, with projected losses in the third quarter.
Analysts suggest that the company may need to divest parts of its portfolio to improve liquidity. The labor dispute at Boeing has broader implications for the economy, particularly in the Seattle area. The situation underscores the interconnectedness of various sectors within the economy.
Stakeholders from various sectors are calling for a swift end to the labor dispute. The Aerospace Industries Association has urged President Biden to seek a prompt resolution. The outcome of the ongoing labor negotiations will be pivotal for Boeing, the aerospace industry, and the economy at large.