Boeing stock at 52-week lows as plane maker furloughs workers to preserve cash

Published On Sep 21, 2024, 10:34 AM

Boeing's shares have reached 52-week lows due to a labor dispute with its largest union, which has entered its second week. The company is implementing aggressive cost-cutting measures, including furloughs for a significant number of employees, to preserve cash during this challenging period. The ongoing strike has already cost Boeing and its workers approximately $571 million. Analysts are concerned that if the strike continues for an extended period, the financial repercussions could be severe, given Boeing's already high level of debt and low cash reserves. The company is trying to ramp up production of the 737 Max jets, but the strike hampers these efforts. Analysts have lowered Boeing's stock price target, citing production losses and the potential for a prolonged strike into the holiday season.