Boeing to cut 17000 jobs

Boeing to cut 17000 jobs, it has also announced the dissolution of its global diversity, equity, and inclusion (DEI) department as part of a significant company revamp led by new CEO Kelly Ortberg. This restructuring comes at a time when the company is facing multiple challenges, including recent controversies and financial difficulties.

Leadership Changes

Sara Liang Bowen, who served as vice president and was responsible for leading the DEI team, has also resigned from her position. Her departure marks a notable shift in the company’s leadership structure as Boeing seeks to streamline its operations.

Recent Challenges and Criticism

Boeing has been in the spotlight for various issues over the past few months. The company faced a six-week employee strike and dealt with a serious incident in January when a door plug blew out mid-flight on an Alaska Airlines plane. In response to this incident, Boeing paid Alaska Airlines $160 million in initial compensation and committed to implementing design changes to prevent future occurrences. Elon Musk publicly criticized Boeing for prioritizing DEI initiatives over safety and quality in the wake of this accident.

Employee Reassignment and Future Plans

With the dissolution of the DEI division, Boeing plans to reassign affected employees to other human resource roles focused on talent and employee experience. This move indicates a shift in priorities as the company navigates its restructuring process.

Financial Moves and Stock Performance

To strengthen its financial position, Boeing recently launched a stock offering aimed at raising up to $24.3 billion. This decision comes as the company prepares to cut approximately 17,000 jobs, which accounts for about 10% of its global workforce.

As of now, Boeing’s share price reflects the ongoing challenges and restructuring efforts. Investors are closely monitoring the stock’s performance as the company works to stabilize and enhance its financial situation.

Conclusion

The dissolution of Boeing’s DEI department signals a pivotal moment for the company as it aims to refocus its efforts on core operations and safety standards. With leadership changes and a significant stock offering on the horizon, Boeing is striving to overcome its recent hurdles and regain investor confidence.

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