Boeing's CEO lays out his 4-part turnaround plan to fix 'festering of issues' in a memo to employees

• Boeing's CEO revealed a four-part turnaround scheme connected Wednesday.
• In a memo to employees, he promised improved civilization and amended execution.
• The struggling planemaker is facing a machinists onslaught that could extremity Wednesday.

Boeing's caller CEO shared a memo pinch labor connected Wednesday laying retired his scheme to move astir nan struggling planemaker.

Kelly Ortberg, who took complete successful August, said that "trust successful nan institution has eroded," that it's "saddled pinch excessively overmuch debt," and that it has had "serious lapses successful performance."

But he said customers wanted nan institution to succeed, adding: "With nan correct attraction and culture, we tin beryllium an iconic institution and aerospace leader erstwhile again."

He shared a four-pronged scheme to do that:

1. Change nan company's culture

   Ortberg, who spent 2 decades moving for 1 of Boeing's cardinal suppliers, RTX, said Boeing leaders needed to beryllium much connected pinch their group and products to "prevent nan festering of issues and activity amended together to identify, fix, and understand guidelines cause."

   "We request to beryllium connected nan mill floors, successful nan backmost shops and successful our engineering labs," he said. "We request to cognize what's going on, not only pinch our products, but pinch our people."

   Ortberg added that he's moving to alteration nan operating process astatine Boeing to support leaders accountable.

2. Stabilize nan business

   "We person immoderate really large rocks that we request to get down america to move nan institution forward," Ortberg said.

   His superior attraction is ending a machinists strike. Results of nan union's ballot connected nan latest statement connection are expected to travel Wednesday evening.

   "We person been moving feverishly to find a solution that useful for nan institution and meets our employees' needs," he said.

   Once nan onslaught is over, Boeing's adjacent attraction will beryllium restarting its factories and proviso concatenation pinch an accent connected its information and quality-control systems, he said.

3. Improve execution discipline

   Ortberg said Boeing needed to amended understand and negociate nan risks of its craft programs. This includes managing expectations and improving supply-chain management.

4. Build a caller early for Boeing

   "Boeing is an airplane institution and astatine nan correct clip successful nan early we request to create a caller airplane," he said. "But we person a batch of activity to do earlier then."

   He said that while nan institution was "consumed pinch nan challenges of today," it could laic nan instauration for its early by resetting priorities and creating a leaner, much focused organization.

   "This is simply a large vessel that will return immoderate clip to turn, but erstwhile it does, it has nan capacity to beryllium awesome again," he said.

   Boeing connected Wednesday reported a nett nonaccomplishment of $6.1 cardinal successful nan 3rd 4th of 2024. Revenue accrued 5.8% to $17.84 billion, which was somewhat little than expert expectations.