Troubled Boeing seeks 25 billion to fix problems

This article was last updated on October 15, 2024

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Troubled Boeing seeks 25 billion to fix problems

Airplane manufacturer Boeing is passing the hat around to shareholders and investors to solve its financial problems. The American company gave the American stock exchange watchdog today information about a plan to raise $25 billion, including through the issuance of new shares and bonds. The amount is approximately one-quarter of Boeing’s current stock market value.

The announcement comes a few days after Boeing announced that it is cutting deep into its workforce. CEO Kelly Ortberg wants 17,000 jobs to reduce costs at the troubled aircraft manufacturer. This would put 10 percent of employees on the street.

Boeing has been experiencing major delays in aircraft production for some time. After accidents and defects in various new aircraft, Boeing is under the magnifying glass of American safety authorities and the judiciary.

Strike

In the meantime, employees at various factories have been striking for almost a month for a better collective labor agreement. The strike is only causing production backlogs at Boeing to continue to pile up. It is assumed that Boeing needs the $25 billion to prevent its coffers from running out due to the accumulation of problems.

Boeing has been dogged by accidents and incidents for some time:

Boeing lays off 17,000 people after a series of accidents and incidents