Boeing CEO Charts New Course Amidst Tumultuous Times

Boeing CEO Kelly Ortberg unveils a turnaround plan focusing on cultural change amid ongoing risks like strikes and debt. He emphasizes improving defense business and the 737 MAX and 777 lines while stabilizing the company. Ortberg calls for better execution and supplier support to overcome challenges.

Boeing's CEO, Kelly Ortberg, laid out a comprehensive turnaround plan on Wednesday, focusing on a 'fundamental culture change' to steady the struggling planemaker. Facing a debilitating strike, rising debt, and increased cash burn, Ortberg stressed improving the defense sector and key programs, including the 737 MAX and 777 lines.

Ortberg's candid address to Boeing employees followed sweeping downsizing plans announced earlier this month, amid a strike involving 33,000 workers. The strike, which stretches into its second month, has hampered production of top models like the 737 MAX. The outcome of a crucial workers' vote on a new contract could shape the company's immediate future.

Challenges extend beyond internal issues, as restarting production will test Boeing's supply chain resilience. Ortberg aims to rejuvenate supplier relationships disrupted by the ongoing strike. Meanwhile, questions linger on potential capital raises, as Boeing faces a third-quarter cash burn of $1.3 billion.

(With inputs from agencies.)