The new report cites a person familiar with a recent discussion between Boeing’s board and executives at its headquarters in Arlington, Virginia. The meeting centered around potential asset sales, as executives and board members combed through internal reports on the state of each of the planemaker’s units.
Just weeks ago, Boeing CEO Kelly Ortberg told employees, “We need to be clear-eyed about the work we face,” adding, “We also need to focus our resources on performing and innovating in the areas that are core to who we are.”
On Tuesday, just days after Boeing announced plans to cut 10% of its workforce due to intensifying financial pressure, such as dwindling cash reserves and mounting risk of a credit downgrade, as well as prolonged strike, the beleaguered planemaker filed a $25 billion shelf registration.
“This universal shelf registration provides flexibility for the company to seek a variety of capital options as needed to support the company’s balance sheet over a three-year period,” Boeing wrote in the filing.
Separately, Boeing entered into a $10 billion “supplemental credit agreement” with a consortium of lenders. It noted that the credit facility provides “additional short-term access to liquidity as we navigate through a challenging environment,” adding that it has not drawn down on this facility or its existing credit revolver.
Boeing’s obsession (Wall Street’s obsession) with DEI, climate, and gender justice ultimately dealt the fatal blow. It’s time to refocus on the fundamentals, like building planes that actually stay in the sky. Is that a hard ask, Boeing?
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