Boeing’s new CEO, Kelly Ortberg, delivered a powerful message to employees on Wednesday, demanding an end to internal conflicts to focus on competing with Airbus. During an intense all-hands meeting, Ortberg addressed the company’s severe challenges, including a recent strike and significant financial losses. His call for unity comes as the aerospace giant struggles with a plummeting stock price and the threat of a trade war with China, setting a new tone for the turbulent company.
A Direct Plea to End Internal Conflicts
In his first major address since taking the CEO position in August, Kelly Ortberg did not hold back. He expressed deep frustration with the company’s culture, stating, “We spend more time arguing amongst ourselves than thinking about how we’re going to beat Airbus.” This candid criticism highlights the internal discord that Ortberg believes is crippling the company’s recovery efforts.
The timing of his message is critical. Boeing is navigating the fallout from a seven-week strike and a stock value that has dropped by about 40% this year. Ortberg’s directive was simple and aimed at shifting the company’s mindset from internal grievances to external competition and productivity.
He laid out several clear expectations for the workforce:
- Reduce internal squabbling to improve focus and efficiency.
- Prioritize assigned tasks over workplace gossip and complaints.
- Engage in constructive and positive communication with colleagues.
“Everybody is tired of the drumbeat of what’s wrong with Boeing,” Ortberg added, underscoring the urgency to change the narrative and rebuild the company from within.
Facing External Threats and Internal Reductions
Beyond the cultural issues, Ortberg addressed the serious external pressures facing Boeing. He spoke about his discussions with President-elect Donald Trump regarding proposed 60% tariffs on Chinese goods. These tariffs could severely damage Boeing’s sales in China, one of its most important markets, and make its aircraft less competitive.
At the same time, the company is managing a significant workforce reduction. In October, Boeing announced it would cut 10% of its global staff, which affects over 17,000 employees. The layoffs are a direct response to financial pressures and are intended to streamline operations.
The recent layoff notifications included specific numbers for several locations and groups.
| Location or Group | Number of Employees Affected |
|---|---|
| Washington | 2,199 |
| Oregon | 50 |
| SPEEA Members | 438 |
These job cuts, while framed as a necessary business decision, have contributed to low morale and uncertainty among the remaining employees.
Signs of Progress Amid the Turmoil
Despite the bleak news, there are positive signs for Boeing. The company has successfully resumed production of its 737 Max airplanes. This is a major milestone after the aircraft was grounded worldwide following two tragic accidents. Resuming production is a key step in restoring trust with airlines and the public.
Furthermore, Boeing secured its first major order since the strike ended. On November 12, Avia Solutions Group placed an order for 80 Boeing 737 Max aircraft. This new order provides a much-needed boost and shows that market confidence is beginning to return.
A Vision for Reclaiming Aerospace Leadership
In his third-quarter statement, Ortberg outlined his long-term vision for the company. “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,” he stated. His strategy hinges on creating a culture of accountability and collaboration.
Ortberg’s leadership is now under intense scrutiny. His ability to mend internal divisions, navigate geopolitical trade risks, and inspire a demoralized workforce will determine if Boeing can overcome its current challenges. The road ahead is difficult, but the recent 737 Max developments show that a path to recovery is possible if the company can unite behind its new leader.
