Boeing has announced plans to raise $25 billion through the issuance of stocks and bonds, along with securing a $10 billion credit agreement with major lenders, as part of its strategy to bolster its weak financial standing. This move comes in response to prolonged worker strikes and ongoing regulatory issues.
The strike involves approximately 33,000 employees at Boeing's West Coast factories and has been ongoing since September 13. The labor dispute has yet to reach a resolution over wage disagreements. The strike has led to significant production disruptions, consuming substantial cash reserves. An analysis by Anderson Economic Group estimates that the strike has resulted in nearly $5 billion in financial losses for Boeing.
Last week, Boeing's newly appointed CEO, Kelly Ortberg, announced that the company plans to reduce its workforce by about 10%, which translates to approximately 17,000 jobs. Additionally, the release of a new 777 large aircraft model will be postponed. Due to the strike, production of Boeing's current 777 models and its best-selling 737 Max aircraft has been halted.
