Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Boeing today announced restructuring amid continued fallout from two fatal crashes involving its 737 MAX model, which it temporarily stopped producing last week.


Dennis Muilenburg has resigned as chief executive officer and will be replaced on an interim basis by Greg Smith, who will hold the position until David L. Calhoun, currently the company’s chairman, has fulfilled prior obligations outside the company. Board member Lawrence W. Kellner will become non-executive chairman of the board effective immediately.


The 737 MAX was grounded earlier this year after 346 people were killed in two separate safety features-related crashes in October 2018 and March 2019. The decision is likely to affect Boeing’s vast supplier chain, a consequence of which could be production cuts—even layoffs if 737 MAX manufacturing doesn’t soon resume.


The company indicated Monday’s restructuring announcement is intended in good faith as the Boeing looks to repair its relationships with various stakeholders, from regulators to customers.

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