I can't even think of a company that's ever had a worse year than Boeing's 2024 has been.
It seems like we can't go a month without a new whistleblower, near-disaster, crash landing, or economic downturn for the aerospace company.
The latest news, 17,000 employees, 10% of the workforce, are being dismissed as the company battles poor stocks and bad earnings.
Boeing stock (BA) slid 2% in after-hours trading Friday as the company said it would cut its workforce by 10%, or roughly 17,000 jobs, and delay the first delivery of its 777X jet to 2026 amid an ongoing worker strike.
'Our business is in a difficult position, and it is hard to overstate the challenges we face together,' CEO Kelly Ortberg said in a message to employees posted on Boeing's website. 'Beyond navigating our current environment, restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term.'
To make matters worse, the company is facing more problems on the finances side. They are dealing with the strike, of course, and it's going to delay production tremendously.
And now their credit rating as a company is tanking.
Earlier this week, the credit rating agency placed Boeing on CreditWatch Negative, which increased the likelihood of a downgrade if the work stoppage continues until the end of the year. Riskier credit makes it more difficult and expensive for companies to borrow money.
S&P expects Boeing will incur a cash outflow of approximately $10 billion in 2024.
As a result, Wall Street analysts expect Boeing will need to raise cash through an equity offering. At the end of the second quarter, Boeing had roughly $58 billion in total debt and $12.6 billion in cash.
Yeah.
There's some turbulence ahead for Boeing as their reputation among the public and among the finance world continues to falter.
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