Boeing Stock: Leadership Shake-up Amid Financial Turbulence

Boeing faces significant challenges as its stock hits a two-year low following major leadership changes and ongoing operational issues. The aerospace giant's new CEO, Kelly Ortberg, announced the immediate departure of Ted Colbert, who headed the defense and space division. Steve Parker has been appointed as interim leader of this troubled sector, which reported an operating loss of approximately $1 billion in the last quarter.

Production and Labor Concerns

The company's woes extend beyond its space and defense operations. Boeing is grappling with a strike by its largest union, the IAM, representing about 33,000 employees. The walkout, which began in mid-September, is impacting the production of key models like the 737 and 777, leading to delivery delays. Despite Boeing offering a 30% wage increase over four years, the union is holding out for a 40% raise. These issues, combined with recent incidents involving the 737-9 Max and cost overruns on high-profile projects, have shaken investor confidence and contributed to the stock's downward trajectory.