Boeing takes a hit

Business & Economy

The Big Story

Boeing posts $6B loss ahead of union vote

On Wednesday morning, Boeing reported losses topping $6 billion last quarter as union members began voting on a labor contract that could end a weeks-long strike.

“It will take time to return Boeing to its former legacy, but with the right focus and culture, we can be an iconic company and aerospace leader once again,” Boeing President and CEO Kelly Ortberg said as part of the earnings release.

Ortberg joined Boeing in August. A few weeks later, on Sept. 13, 33,000 machinists walked off the job.

The strike could be over as soon as Wednesday if union members vote to approve a contract that includes a 35 percent pay increase over four years, a $7,000 ratification bonus and improvements to retirement plans.

Voting closes at 5 p.m. PT. There's no guarantee union members approve the contract.

Boeing also posted an $8 billion loss over the last nine months, which has seen regulatory scrutiny and safety changes put in place after the door of a 737 blew off during an Alaska Airlines flight in January.

Ortberg said that moving forward, the company “will be focused on fundamentally changing the culture, stabilizing the business, and improving program execution, while setting the foundation for the future of Boeing.”

As part of its four-pronged revamp, Boeing plans to lay off 10 percent of its staff, Ortberg announced earlier this month.

“We’ve recently announced a workforce reduction which will focus on consolidation of areas where we’re not efficient, and we need to continue to focus on reducing nonessential activity,” Ortberg explained during the earnings call Wednesday morning.

The Hill's Taylor Giorno has more here.

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