Boeing Stock: Massive Job Cuts Amid Financial Turmoil

Boeing, the US aircraft manufacturer, is facing significant financial challenges as it grapples with declining revenues and mounting losses. The company reported a revenue drop to $17.8 billion in the third quarter of 2023, falling short of analyst expectations. This downturn is primarily attributed to an ongoing strike by the IAM union, which has severely impacted production at Boeing's facilities near Seattle. Additionally, the company's balance sheet is burdened by $5 billion in write-offs, with $3 billion affecting the commercial aircraft division.

Drastic Measures and Market Impact

In response to these financial woes, Boeing has announced plans to reduce its workforce by approximately 10%, affecting both management and employees. This decision has had an immediate impact on the company's stock, with shares falling 0.64% to €135.77 on October 13, 2024. The aircraft manufacturer is also facing delays in delivering its 777X model, with customers now expected to wait until 2026 for the passenger version and 2028 for the freight variant. These setbacks, combined with a negative price-earnings ratio for 2024 and a current market capitalization of €85.1 billion, underscore the challenges Boeing faces in regaining investor confidence and stabilizing its market position.