Boeing's Stock Plummets 30% Amid Safety Concerns and Leadership Overhaul

Boeing’s stock has fallen over 30% in the last year, contrasting sharply with the S&P 500’s 27% rise. This decline follows a series of safety and quality issues, highlighted by a midair incident involving a Boeing 737 Max 9. The company has undergone significant changes, including the appointment of a new CEO, Kelly Ortberg, in August. Ortberg, with three decades of aerospace experience, has initiated a comprehensive overhaul, focusing on safety and quality. Boeing has reduced defects in 737 fuselages, cut down on out-of-sequence work, and implemented random quality audits. Despite these efforts, the Federal Aviation Administration has increased oversight, capping production rates. Boeing has not posted an annual profit since 2018, losing over $30 billion since 2019. The company also faced a two-month strike by machinists, resulting in a new labor deal with 38% raises. To address financial challenges, Boeing raised billions and plans to cut 10% of its workforce.

Source: www.cnbc.com