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Boeing’s new CEO, Kelly Ortberg, outlined a plan for the company to streamline operations and enhance quality during his first quarterly analyst call. Meanwhile, thousands of striking Boeing machinists are set to vote on a new labor contract, with Ortberg expressing optimism for a resolution.

The aerospace company reported a significant loss of over $6 billion for the third quarter, its largest since 2020. This loss stemmed from various factors, including revenue slightly declining to $17.8 billion compared to the previous year. Boeing also disclosed charges exceeding $5 billion across its commercial and defense units.

The commercial airplane unit experienced losses surpassing $4 billion, primarily due to delays in the 777X wide-body aircraft debut and the eventual discontinuation of the 767 production. On the other hand, the defense unit reported a loss of $2.4 billion, with setbacks in programs like the KC-46 tanker and Starliner capsule.

Ortberg, who assumed the CEO role in August, emphasized the need to address quality issues within the company and prevent future mishaps. He also announced plans to reduce the global workforce by 10% in a bid to restructure and refocus the organization.

The ongoing labor strike by Boeing machinists in the Seattle area poses a significant challenge for the company, costing approximately $1 billion per month. However, a new proposal offering higher raises and bonuses may lead to a resolution soon. The deal also includes a commitment to build the next aircraft in the Pacific Northwest.

Analysts remain hopeful that the labor vote will yield a positive outcome, allowing Boeing to navigate through its current challenges and move towards a more stable future.

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