Boeing, the American aerospace company, recently announced its third quarter earnings, revealing a substantial net loss of $6.17 billion. This latest loss adds to the total losses of nearly $8 billion that Boeing has suffered in 2024. The company’s operating cash flow also took a hit, with a negative amount of $1.345 billion reported. Despite this financial setback, Boeing’s revenue decreased only slightly by approximately 1% to $17.8 billion. These figures were in line with the preliminary results announced the previous week.

In response to the earnings report, new CEO Kelly Ortberg addressed employees, acknowledging the challenges ahead. Ortberg emphasized the need for a significant turnaround at Boeing, stating, “This is a substantial vessel that will require some time to reverse course; however, when it does, it has the potential to be exceptional once more.”

Alongside the financial results, Boeing also revealed strategic decisions to cope with the current situation. The company announced its decision to halt production of the 767 cargo jet and delay the release of the 777X widebody jet. Additionally, Boeing disclosed that it would incur $5 billion in pre-tax charges, primarily from its commercial airlines division and defense business.

To bolster its financial position, Boeing secured a $10 billion credit agreement with a consortium of banks and filed a mixed shelf registration with the SEC to raise up to $25 billion through debt securities, common stock, preferred stock, and other offerings. Reports suggest that Boeing plans to implement a $10 billion stock offering through this registration.

Despite these measures, Boeing faces a labor dispute with its main union representing 30,000 workers. The company revealed plans to reduce its workforce by 10%, equating to around 17,000 employees across all divisions. These workforce reductions are expected to begin in the coming months as Boeing navigates the challenges posed by the labor dispute and aims to streamline its operations.

The labor dispute centers on negotiations with the International Association of Machinists (IAM). On the same day as the earnings announcement, Boeing employees were set to vote on a new contract proposal. The strike has incurred significant costs for both Boeing and its workers, with estimates suggesting the total cost is nearing $5 billion.

Ortberg expressed the company’s commitment to finding a resolution to the strike, stating, “The termination of the IAM strike is the primary concern of all individuals today.” Boeing is striving to strike a balance between serving the company’s interests and meeting the needs of its employees during this challenging time.

Looking ahead, Boeing aims to refocus its priorities and streamline its operations to create a leaner and more efficient organization. The company’s strategic decisions in response to the financial challenges underscore Boeing’s commitment to navigating the current turbulence and positioning itself for future success in the aerospace industry.