Boeing Took Nearly $3B Hit In Q4 Related To Strike, Layoffs

Boeing Co. said it incurred nearly $3 billion in charges in the fourth quarter of 2024 due to a lengthy labor stoppage, job cuts, and issues with several government programs, the Associated Press (AP) reported.

The Chicago-based aerospace giant has been undergoing a significant amount of turbulence of late. I Photo: The Boeing Company Facebook

As a result, the Chicago-based aerospace giant announced that it will report a loss of $5.46 per share next week when it releases its full financial results. Wall Street had been expecting a fourth-quarter loss of $1.80 per share.

The substantial loss marks the end of a challenging year for Boeing.

A strike by machinists who assemble the best-selling 737 Max, along with the 777 jet and the 767 cargo plane at factories in Renton and Everett, Washington, halted production at those facilities and disrupted Boeing’s delivery capabilities.

The walkout ended after more than seven weeks when the company agreed to pay raises and improved benefits.

Additionally, Boeing previously announced a 10% workforce reduction. The company said that it took $1.1 billion in charges related to the 777 and 767 programs in the fourth quarter.

Boeing also incurred an extra $1.7 billion in charges tied to various government programs, including a military refueling tanker and Air Force One replacement jets.

Boeing reported revenue for the quarter at $15.2 billion, significantly below analysts’ expectations of $16.6 billion.