Boeing raising up to $35bn as costly strike enters second month

Published On Oct 15, 2024, 10:16 PM

Boeing is looking to raise up to $35 billion through stock and debt offerings as a major strike affecting thousands of its workers continues for the second month. The company also plans to lay off around 17,000 employees. Boeing announced that it is cutting workforce by a tenth and postponing deliveries of its new 777X aircraft. Negotiations to resolve the strike recently fell apart after Boeing withdrew a pay rise proposal for workers, leading to increased tensions between the company and the labor union.

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Stock Forecasts

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Negative

Boeing's ongoing issues with labor strikes and regulatory delays, alongside significant layoffs and cutbacks, suggest a challenging near-term outlook. The ongoing liquidity measures, including substantial fundraising efforts, indicate that the company is under financial stress. Given these factors, the stock may face downward pressure as investor sentiment might shift negatively due to concerns over prolonged operational disruptions and financial stability.

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