Boeing needs a 'pretty profound culture change,' and the Trump administration should make it a priority, Pete Buttigieg says
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- Transportation Secretary Pete Buttigieg shared his thoughts on Boeing.
- "What we really need to see is a pretty profound culture change," he told Bloomberg.
- He also said he hopes the next administration will prioritize Boeing's progress.
Boeing has more work ahead to change its culture, Pete Buttigieg, the outgoing transportation secretary, said in two Monday interviews.
"What we really need to see is a pretty profound culture change that will be ultimately proven out by the results, and that's results over the long term," Buttigieg told Bloomberg.
"That is a work in progress for them," he added.
Buttigieg also told Reuters that "there were real deficiencies" at Boeing and "there is much more to do."
"I think the culture change at Boeing is something that is a real work in progress and the only way to fully assess it will be to see they can consistently improve results," he told the news agency.
The embattled planemaker has a tough task ahead after a challenging 2024.
It ended the year as the biggest loser in the Dow Jones Industrial Average, following a seven-week strike and a crisis sparked by last January's Alaska Airlines blowout. Some airline bosses also spoke about their irritation with delivery and certification delays.
Kelly Ortberg, who took over as Boeing CEO last August, has also spoken about the need to change the company's culture.
In an October earnings call, he said Boeing leaders need to be "closely integrated" with other staff and the business itself — spending time on the factory floors and being held accountable to the firm's values.
"We will be relentless in changing the Boeing culture through action, not just words on a page," Ortberg added.
Buttigieg's comments come two weeks before Donald Trump is scheduled to be inaugurated as president. Trump has nominated Sean Duffy, a Fox Business host and former congressman, to take over as transportation secretary.
"I hope that making sure that Boeing makes the progress they need to make will be just as much of a priority for any other administration as it has been for ours," Buttigieg told Bloomberg.
Boeing did not immediately respond to a request for comment sent by Business Insider.