Jim Cramer expressed his concerns regarding Boeing Co.’s BA financial health after the plane maker announced plans to lay off 17,000 employees in the wake of ongoing safety issues and worker strikes.
What Happened: Cramer, in CNBC‘s Lightning Round on Saturday, voiced his worries about Boeing’s financial situation, stating, "I'm worried…The balance sheet's not great, and they should have raised capital when they had a chance to.”
“This was a very jarring series of news tonight, and I don't have any conviction whatsoever that they are getting this right," he added.
See Also: Tesla Stock Falls Nearly 3% In Overnight Trading On Robinhood After Self-Driving Cybercab Unveil
Boeing’s CEO, Kelly Ortberg, disclosed the impending job cuts in an email to staff. The layoffs, which will affect a range of employees including executives and managers, represent about 10% of the company’s workforce and will be implemented over the coming months.
Why It Matters: The aerospace giant has been grappling with a series of challenges this year. In January, its 737 Max planes were grounded following a mid-flight incident. In July, Boeing admitted guilt in crashes involving the 737 Max in 2018 and 2019, which resulted in over 300 fatalities.
Further complications arose with Boeing's Starliner spacecraft, which returned from the International Space Station in September without astronauts due to technical issues. Additionally, nearly 33,000 Boeing factory workers have been on strike since mid-September, further complicating the company's situation.
Ortberg stressed the need for the layoffs to align with Boeing’s financial reality and future recovery plans. The delivery of the first 777X airplane has now been postponed to 2026, as stated in Ortberg's memo.
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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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