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PATRICK T. FALLON/Getty Images
- Boeing is experiencing a tumultuous year.
- The firm has dealt with mechanical failures, legal battles, executive turnover, and workforce reductions.
- This article outlines the escalating difficulties Boeing has faced this year.
This year has been particularly challenging for Boeing.
From an alarming incident involving the loss of a door plug on an Alaska Airlines flight that resulted in a midair emergency to significant departures among its leadership team, Boeing’s troubles have compounded in 2024. The company’s stock value has plummeted by over 40% since the beginning of the year.
Below is an overview of how Boeing’s situation deteriorated significantly this year.
Boeing representatives did not provide any comments when approached by Business Insider for insights on these issues.
NTSB via Reuters
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This year saw multiple lawsuits filed against Boeing. Passengers from the aforementioned flight quickly initiated a collective lawsuit shortly after their ordeal. The suit described their experience as “shocking and bewildering,” leaving them uncertain if they would survive those moments aboard the aircraft.
Additionally, shareholders also filed their own lawsuit within days after claiming that profit was prioritized over safety concerns at Boeing.
In July alone, it was reported that Boeing reached a plea agreement concerning two tragic crashes involving its model in late-2018 and early-2019 which resulted in numerous fatalities—346 lives lost altogether. If approved by judicial authorities soon enough—this deal would see them plead guilty to conspiracy charges while avoiding trial proceedings; alongside paying fines estimated around $244 million along with committing at least $455 million towards enhancing safety protocols.
Previously back in early-2021—the company had already agreed upon paying $2.5 billion as part settlement terms with federal authorities regarding those same crashes but recent statements indicated violations occurred leading up towards renewed scrutiny surrounding compliance measures taken thereafter.
Families affected have voiced strong opposition towards such leniency calling it merely “a sweetheart deal,” demanding penalties reaching nearly $25 billion instead.
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NASA
Stephen Brashear/Getty Images
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p>The strike commenced after contract negotiations between thousands of unionized employees at Boeing collapsed in September.. Despite an attractive pay proposal offering over 25% wage increases across more than 32 thousand workers within Washington State over several years,, union members ultimately rejected this offer and voted overwhelmingly in favor of initiating a strike which has cost the company approximately $50 million daily.....
Negotiations have since reached an impasse as both parties filed complaints with National Labor Relations Board alleging bad faith bargaining practices against one another.
JENNIFER BUCHANAN/POOL/AFP/Getty Images
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P>Boeing initiated furloughs among white-collar staff starting mid-September coinciding with labor strikes; select employees were mandated one week off every four weeks rolling basis.
Ortberg announced executive leadership would also undergo corresponding salary reductions throughout duration strikes although specifics remain unclear.
Layoffs followed shortly thereafter; mid-October saw announcements regarding plans cut roughly ten percent workforce totaling around170000 individuals.
In memo addressed employees Ortberg expressed company faced challenging circumstances stating “restoring our organization necessitates difficult choices.”
Additionally production timelines were pushed back concerning new twin-engine jet model777x while discontinuation occurred related767 cargo plane noted memo.
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Boeing’s Safety Culture Under Scrutiny: Whistleblower Revelations
The Federal Aviation Administration (FAA) has emphasized the necessity for Boeing to enhance its safety culture. The agency stated, “Boeing has presented a comprehensive plan to transform its safety practices, and we will ensure that these changes are effectively implemented. Production increases will remain capped until we are confident that Boeing has executed the necessary corrective measures and made significant improvements in their safety culture.”
Concerns Raised by Whistleblowers at Boeing
Stephen Brashear/Getty Images
During a Senate hearing in April, Sam Salehpour, an engineer at Boeing, revealed that his warnings regarding safety issues were disregarded by the company. He also reported experiencing retaliation from his supervisor and threats to his personal safety.
A Senate subcommittee tasked with examining Boeing’s adherence to safety protocols published a detailed 204-page report in June, which included testimonies from multiple whistleblowers.
Sam Mohawk, who works as a quality assurance inspector for Boeing, disclosed that the company had lost track of numerous defective parts intended for the 737 model and directed employees to hide improperly stored components from FAA inspectors.
Additionally, Richard Cuevas submitted a complaint to the FAA in June alleging that improper drilling was occurring on components of the 787 Dreamliner aircraft.
Read more on Business Insider
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