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The quarterly results had been telegraphed to the market on October 11, when newly installed Chief Executive Kelly Ortberg announced the company was cutting 10 percent of its workforce. “I would rather err on the side of doing less and better than doing more and not doing it well,” Ortberg said in his first media interview as CEO.
The near-catastrophe – coming after two fatal 737 MAX crashes in 2018 and 2019 that claimed 346 lives – put Boeing under greater regulatory oversight. In its defense and space business, Boeing’s results were battered by US$2 billion in costs for a number of programs, including the KC-46A Pegasus Air Force refueling aircraft.In the memo, Ortberg called for better management of defense, where the company has seen profits repeatedly hit in recent years due to cost overruns on fixed-price contracts.Other key priorities include maintaining Boeing’s investment-grade credit rating and, further down the road, beginning to engineer a new airplane.
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