Boeing enters $10B credit agreement with group of banks, report says

Boeing has entered a credit agreement worth $10 billion with a group of major banks amid a strike that’s passed the one-month mark.

According to Reuters, the company is diversifying its financing options as it has $11.5 billion in debt maturing through Feb. 1, 2026.

Boeing’s financial problems have increased since about 33,000 factory workers in the Machinists union began a strike on Sept. 13. The move halted the production of the 737 MAX, prompted a hiring freeze, and caused other cost-cutting measures.

Boeing also announced last week that it would cut $10% of its workforce — about 17,000 employees — including executives and managers.

It will send out 60-day layoff notices next month.

The company has about 170,000 employees worldwide.

Analysts estimate Boeing has lost $5 billion because of the strike so far.

Meanwhile, workers in the Puget Sound region will hold a rally Tuesday afternoon outside the Seattle Union Hall.

Reuters reports that the acting US Secretary of Labor, Julie Su, is in Seattle to meet with union and Boeing officials to convince them to return to the bargaining table.

Negotiations came to a standstill last week when both sides accused the other of failing to bargain in good faith.

During Tuesday’s noon rally, Democrats Senator Maria Cantwell and Congresswoman Pramilia Jayapal are expected to speak.

©2024 Cox Media Group