Boeing HQ
Today’s key stories center about the depth of the turnaround at Boeing and the elimination of a surveillance system. Boeing’s turnaround is both the hardest job and biggest opportunity in business today, given the depth of their losses, failures in manufacturing and safety, and cash flow challenges.
While new CEO Kelly Ortberg is trying to change the company’s culture to one of trust, a facilities surveillance plan was leaked and then quickly reversed by the company. The system, ostensibly for facility utilization, would determine areas unoccupied and be able to adjust HVAC levels to levels of activity by tracking the number of employees in specific areas.
While a presentation suggested that cameras embedded in ceiling tiles were supposed to be blurry enough not to be able to identify individual employees or writing on desks, that does not appear to be factual. The quick backoff from this system may indicate the negative impact its is having on management-employee relations during a period of significant layoffs.
The FAA Administrator, in an interview late last week, indicated that Boeing has not restarted production of the 737 MAX. However, with a number of first flights since the strike ended, it is clear that activities related to production and certification are continuing. Without production activity, a first flight could not be accomplished. As a result we’re not certain whether the Administrator’s statement is truly accurate. Boeing is progressing with the implementation of a new safety system, but it does not appear that production has been fully shut down to a zero level..
The layoffs are continuing, and preliminary statements filed with state unemployment authorities indicate additional layoffs, many from the SPEEA union, and a number of Space Coast employees in Florida also have jobs in jeopardy as the company moves closer to its 10% job cut goals.
In related news at the executive level, the company’s top lobbyist is departing the company. Ziad Ojakli was announced to be leaving the company, effective immediately. Whether this is a part of the force reduction or another type of departure remains unknown.
Links to today’s key news follow:
- Saving Boeing is the hardest job and biggest opportunity in business – Seattle Times
- Boeing busted by employee over plans to surveil workers, quickly reverses course – The Register
- FAA Admin: Boeing 737 MAX production on hold – Airways
- Boeing lays off hundreds more SPEEA workers – MyNorthwest
- Boeing’s top lobbyist departing planemaker, CEO says – Yahoo
- Boeing layoffs to hit space center in January – The Oregonian
Views: 104
