Strike-Hit Boeing Leaves Experts Puzzled By Strategy

A historic round of cost-cutting measures at Boeing has left experts perplexed, raising questions about whether the aviation giant, plagued by a month-long strike, is sacrificing its future, Elodie Mazein reported for Agence France-Presse (AFP).

Boeing's cash position is rapidly diminishing as the strike continues. I Photo: Can Pac Swire Flickr

"I'm not sure I see the bigger plan here," Richard Aboulafia, a consultant with AeroDynamic, told AFP. "Getting rid of a lot of talent when there's a serious aerospace talent shortage doesn't seem like the smartest move," he added.

The company announced a series of belt-tightening measures and production delays, as the strike by 33,000 workers added to Boeing's list of problems.

"There may be some fat, but the idea that there's 10 percent fat, I can't imagine in what universe that could be true," said Aboulafia.

Analysts at TD Cowen described Boeing's approach as a "strategic reset" aimed at raising capital and generating up to $10 billion in the absence of aircraft deliveries.

Boeing has faced numerous challenges, including the crashes of 2018 and 2019 (resulting in 346 deaths) and the COVID-19 pandemic. The company’s cash position is rapidly diminishing as the strike continues.