Even today Boeing is run by a Welch disciple. Dave Calhoun, the current C.E.O., was a dark horse candidate to succeed Mr. Welch in 2001, and he was on the Boeing board during the rollout of the Max and the botched response to the crashes.

When Mr. Calhoun took over the company in 2020, he set up his office not in Seattle (Boeing’s spiritual home) or Chicago (its official headquarters), but outside St. Louis at the Boeing Leadership Center, an internal training center explicitly built in the image of Crotonville. He said he hoped to channel Mr. Welch, whom he called his “forever mentor.”

The “Manager of the Century” was unbowed in retirement, barreling through the twilight of his life with the same bombast that defined his tenure as C.E.O.

He refashioned himself as a management guru and created a $50,000 online M.B.A. in an effort to instill his tough-nosed tactics in a new generation of business leaders. (The school boasts that “more than two out of three students receive a raise or promotion while enrolled.”) He cheered on the political rise of Mr. Trump, then advised him when he won the White House.

In his waning days, Mr. Welch emerged as a trafficker of conspiracy theories. He called climate change “mass neurosis” and “the attack on capitalism that socialism couldn’t bring.” He called for President Trump to appoint Rudy Giuliani attorney general and investigate his political enemies.

The most telling example of Mr. Welch’s foray into political commentary, and the beliefs it revealed, came in 2012. That’s when he took to Twitter and accused the Obama administration of fabricating the monthly jobs report numbers for political gain. The accusation was rich with irony. After decades during which G.E. massaged its own earnings reports, Mr. Welch was effectively accusing the White House of doing the same thing.

While Mr. Welch’s claim was baseless, conservative pundits picked up on the conspiracy theory and amplified it on cable news and Twitter. Even Mr. Trump, then merely a reality television star, joined the chorus, calling Mr. Welch’s bogus accusation “100 percent correct” and accusing the Obama administration of “monkeying around” with the numbers. It was one of the first lies to go viral on social media, and it had come from one of the most revered figures in the history of business.

When Mr. Welch died, few of his eulogists paused to consider the entirety of his legacy. They didn’t dwell on the downsizing, the manipulated earnings, the Twitter antics.

And there was no consideration of the ways in which the economy had been shaped by Mr. Welch over the previous 40 years, creating a world where manufacturing jobs have evaporated as C.E.O. pay soars, where buybacks and dividends are plentiful as corporate tax rates plunge.

By glossing over this reality, his allies helped perpetuate the myth of his sainthood, adding their own spin on one of the most enduring bits of disinformation of all: the notion that Jack Welch was the greatest C.E.O. of all time.

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Why Jony Ive Left Apple to the ‘Accountants’

The new arrangement freed Mr. Ive from regular commutes to the company’s offices in Cupertino. He shifted from near daily product reviews to an irregular schedule when weeks would pass without weighing in. Sometimes word would spread through the studio that he was unexpectedly coming to the office. Employees compared the moments that followed with old footage of the 1920s stock market crash with papers being tossed into the air and people scurrying around in a furious rush to prepare for his arrival.

With anticipation mounting on Wall Street for a 10th-anniversary iPhone in early 2017, Mr. Ive summoned the company’s top software designers to San Francisco for a product review. A team of about 20 arrived at the city’s exclusive social club, The Battery, and began spreading out 11-by-17-inch printouts of design ideas in the club’s penthouse. They needed Mr. Ive’s approval for several features on the first iPhone with a full-screen display.

They waited that day for nearly three hours for Mr. Ive. When he finally arrived, he didn’t apologize. He reviewed their printouts and offered feedback. He then left without making final decisions. As their work stalled, many wondered, How did it come to this?

In Mr. Ive’s absence, Mr. Cook began reshaping the company in his image. He replaced the outgoing company director Mickey Drexler, the gifted marketer who built Gap and J. Crew, with James Bell, the former finance chief at Boeing. Mr. Ive was irate that a left-brained executive had supplanted one of the board’s few right-brained leaders. “He’s another one of those accountants,” he complained to a colleague.

Mr. Cook also emboldened the company’s finance department, which began auditing outside contractors. At one point, the department rejected a legitimate billing submitted by Foster + Partners, the architecture firm working closely with Mr. Ive to complete the company’s new $5 billion campus, Apple Park.

Amid those struggles, Mr. Cook began to broaden Apple’s strategy into selling more services. During a corporate retreat in 2017, Mr. Ive stepped outside to get fresh air when a newcomer to Apple named Peter Stern stepped before the company’s top leaders. Mr. Stern clicked to a slide of an X-shaped chart that showed Apple’s profit margins from sales of iPhones, iPads and Macs declining while profit margins rose from sales of software and services like its iCloud storage.

The presentation alarmed some people in the audience. It depicted a future in which Mr. Ive — and the company’s business as a product maker — would matter less and Mr. Cook’s increasing emphasis on services, like Apple Music and iCloud, would matter more.

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Boeing shares sink on fresh 777X setbacks, array of charges, article with image

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April 27 (Reuters) – Boeing Co (BA.N) unveiled $2.7 billion in charges and added costs across its aircraft portfolio on Wednesday, and expressed doubts over hitting jet delivery targets as technical problems, inflation and supplier risks cloud its path toward recovery.

Shares of the U.S. planemaker fell to a nearly 1-1/2 year low after it posted a quarterly loss and announced it was halting 777X production through 2023 due to a fresh delay in its entry into service after certification problems and weak demand.

“Another dreadful set of results,” Agency Partners analyst Nick Cunningham said in a client note, adding that a “general sense of disarray continues”.

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On the plus side, Boeing said it submitted a certification plan to U.S. air-safety regulators in a step toward resuming deliveries of its 787 Dreamliner, halted for nearly a year by inspections and repairs in a separate industrial headache costing about $5.5 billion. read more

The twin-aisled Dreamliner, along with its cash cow 737 MAX, are vital to Boeing’s ability to emerge from overlapping coronavirus and jet-safety crises, a path steepened by war in Ukraine.

Boeing did not specify when Boeing would resume Dreamliner deliveries. Reuters reported last week Boeing had advised key airlines and parts suppliers that the deliveries would resume in the second half of this year. read more

Boeing also confirmed a delay in handing over the first 777X jet to 2025, from the previous target of late 2023, but said it remained confident in the program. [nL2N2WK1VK]

“We’ve got to give ourselves the time and freedom to get this right,” Calhoun told analysts.

Calhoun said the halt in 777-9 production – which will add $1.5 billionin fresh costs – was based on a longer safety certification timeline, a risk reported by Reuters in February. read more

He said the production pause would help minimize inventory and the number of jets requiring retrofits, while it adds to freighter capacity with a newly launched cargo spinoff of the 777X, the world’s largest twin-engine passenger plane. read more

“We are concerned that this delay (in 777X delivery) may allow airlines to cancel without penalty,” Citi Research analyst Charles Armitage said.

Boeing is facing an increasingly high-stakes battle to win certification of the largest variant of the 737 MAX before a new safety standard on cockpit alerts takes effect at year-end.

The deadline for changes was introduced as part of broader regulatory reforms at the Federal Aviation Administration following fatal 737 MAX crashes in 2018 and 2019. read more

“The intent of that legislation was never to stop the derivative product line with respect to the MAX,” Calhoun said. “So I believe our chances are good with respect to getting legislative relief. It doesn’t mean we’ll get them. And if we don’t, it’s a problem.”

Boeing reiterated it expects its 737 MAX production rate to reach 31 planes per month in the second quarter, a slight delay from what some analysts expected, though industry sources have not ruled out a slip. It has 320 of the jets in inventory.

Boeing said it was on track to return to positive cash flow in 2022 with no need for an immediate capital raise as it ramps up deliveries of the cash-cow narrow-body, though it faces risks in the crucial China market even as travel rebounds from the pandemic.

“Traffic is returning, and it’s returning in a pretty big way,” Calhoun said.

It reported a quarterly core loss per share of $2.75, compared with a loss of $1.53 per share a year ago. Revenue fell to $13.99 billion from $15.22 billion.

Like other aerospace companies, Boeing is grappling with supply chain logjams, inflation and fallout from war in Ukraine.

“Inflation continues to take a hard run at everything we do,” Calhoun told analysts.

It booked a $660 million charge in the quarter on its VC-25B – commonly known as Air Force One – due to higher supplier costs and technical problems and schedule delays.

“Air Force One, I’m just going to call a very unique moment, a very unique negotiation, a very unique set of risks that Boeing probably shouldn’t have taken,” Calhoun said. “But we are where we are, and we’re going to deliver great airplanes. And we’re going to recognize the costs associated with it.”

Boeing also recorded $367 million in charges for its T-7A Red Hawk trainer jet due to inflation, supply chain issues and pandemic impacts.

And it booked pre-tax charges of $212 million due to the war in Ukraine and international sanctions against Russia, which pose risks to materials supply and aircraft orders. read more

Asked whether Boeing would hit a 500-aircraft delivery target for the 737 MAX this year, Chief Financial Officer Brian West said, “we probably won’t get quite all the way there.”

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Reporting by Eric M. Johnson in Seattle and Abhijith Ganapavaram in Bengaluru; Additional reporting by Nishit Jogi from Bengaluru; Editing by Arun Koyyur, Bernadette Baum and Nick Zieminski

Our Standards: The Thomson Reuters Trust Principles.

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