Boeing CEO Urges More Cross-Division Collaboration to Boost Morale

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Boeing CEO Kelly Ortberg told employees on Wednesday that the company needs to foster a more open culture where communication and collaboration across divisions are encouraged. Speaking during a company-wide meeting webcast from St. Louis, Missouri, he emphasized that Boeing’s current culture is "insular" and lacks sufficient communication between teams within its various divisions, including commercial airplanes, defense, and global services. Ortberg stressed that improving internal cooperation would help boost morale and ultimately deliver better results in the market.

Boeing, which employs over 160,000 people worldwide, has faced significant challenges, including nearly $12 billion in losses in 2024 and difficulties stabilizing production of its popular 737 MAX, 787, and several defense programs, such as replacements for Air Force One. Ortberg, who became CEO in August, acknowledged that Boeing has lost its "iconic" status and said a cultural shift was essential for addressing the company's safety and quality problems.

The CEO mentioned that his understanding of Boeing's issues was informed by a culture working group composed of employees from across the company, which has been examining its values and behaviors. He also revealed plans to implement an action plan based on an employee survey conducted in February, which had a strong response rate of 82%. Ortberg noted that the results of the survey would likely be "brutal" for leadership.

When asked about improving management, Ortberg outlined plans to enhance leadership development and emphasized the importance of managers listening to and caring about their teams. In October, Ortberg announced a 10% workforce reduction, which involved issuing at least 5,000 layoff notices in the U.S. toward the end of 2024. 

Despite the company’s struggles, Ortberg praised Boeing employees for their commitment, noting that it was "shocking" that the company had not experienced large-scale attrition given its challenges. He attributed this to employees' desire to be part of Boeing's turnaround and return the company to its former glory.

Paraphrasing text from "Reuters" all rights reserved by the original author