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Boeing had previously announced plans to reduce its workforce by 10%, which added to the company's financial strain during the quarter.
UPDATED: Jan 24, 2025 12:28 IST
Boeing Co. has reported nearly $3 billion in charges for the fourth quarter of 2024, leading to a larger-than-expected loss for the aerospace giant.
Labor Strikes and Production Delays
A strike by machinists assembling key aircraft models, including the 737 Max, 777 jet, and 767 cargo plane, severely impacted production at Boeing’s Washington-based factories. The strike lasted more than seven weeks and resulted in significant delays in Boeing's delivery capabilities.
Workforce Reduction and Cost-Cutting Measures
In addition to labor disruptions, Boeing had previously announced plans to reduce its workforce by 10%, which added to the company's financial strain during the quarter.
Massive Charges Linked to Government Programs
The company disclosed that $1.1 billion in charges were related to its 777 and 767 programs, while an additional $1.7 billion was tied to challenges with several government contracts, including the military refueling tanker and the Air Force One replacement jets.
Revenue Misses Analyst Expectations
Boeing reported fourth-quarter revenue of $15.2 billion, falling short of analysts’ expectations, which were set at $16.6 billion. This miss contributed to a sharp drop in shares.
Published By:
Rivanshi Rakhrai
Published On:
Jan 24, 2025
