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Jim Cramer expressed concerns about Boeing Co.’s financial health. (NYSE:BA) after the aircraft maker announced plans to lay off 17,000 employees due to ongoing safety issues and worker strikes.
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What happened: Cramer expressed concerns about Boeing’s financial situation on CNBC’s Lightning Round on Saturday, saying, “I’m concerned… The balance sheet isn’t great, and they should have raised capital when they had the chance.”
“This has been a very shocking piece of news tonight, and I have no faith whatsoever that they are doing this right,” he added.
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Boeing CEO Kelly Ortberg announced the impending job cuts in an email to employees. The layoffs, which will affect a range of employees including executives and managers, represent around 10% of the company’s workforce and will be implemented over the coming months.
Why it matters: The aerospace giant is facing a series of challenges this year. In January, the 737 Max planes were grounded after a mid-flight incident. In July, Boeing pleaded guilty in crashes involving the 737 Max in 2018 and 2019, which resulted in more than 300 deaths.
Further complications arose with Boeing’s Starliner spacecraft, which returned from the International Space Station without astronauts in September due to technical problems. In addition, nearly 33,000 Boeing factory workers have been on strike since mid-September, further complicating the company’s situation.
Ortberg emphasized that the layoffs must be consistent with Boeing’s financial reality and future recovery plans. Delivery of the first 777X aircraft has now been postponed until 2026, as stated in Ortberg’s memo.
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This article Jim Cramer Says ‘I’m Worried’ About Boeing After Airplane Maker Lays Off 17,000 Workers Amid Safety and Financial Problems originally appeared on Benzinga.com
