Boeing is reducing 10 % of its workforce

Workforce,

Our enterprise is in a troublesome place, and it’s exhausting to overstate the challenges we face collectively. Past navigating our present atmosphere, restoring our firm requires robust selections and we should make structural adjustments to make sure we will keep aggressive and ship for our prospects over the long run.

We should be clear-eyed concerning the work we face and sensible concerning the time it would take to realize key milestones on the trail to restoration. We additionally must focus our sources on performing and innovating within the areas which can be core to who we’re, reasonably than spreading ourselves throughout too many efforts that may typically lead to underperformance and underinvestment.

With that in thoughts, as we speak I’m sharing some troublesome selections and several other program updates: 

On the 777X program, the challenges we now have confronted in improvement, in addition to from the flight check pause and ongoing work stoppage, will delay our program timeline. We now have notified prospects that we now anticipate first supply in 2026.

We plan to construct and ship the remaining 767 Freighters ordered by our prospects after which conclude manufacturing of the business program in 2027. Manufacturing for the KC-46A Tanker will proceed.

In BDS, our efficiency on fixed-price improvement packages is just not the place it must be. We anticipate substantial new losses in BDS this quarter, pushed by the work stoppage on business derivatives, continued program challenges and our resolution to finish manufacturing on the 767 freighter. I will likely be offering extra oversight of this enterprise and these packages.

Together with the above actions, we should additionally reset our workforce ranges to align with our monetary actuality and to a extra centered set of priorities. Over the approaching months, we’re planning to scale back the dimensions of our complete workforce by roughly 10 %. These reductions will embody executives, managers and workers. Subsequent week, your management crew will share extra tailor-made details about what this implies on your group. Primarily based on this resolution, we is not going to proceed with the following cycle of furloughs. 

As we transfer by means of this course of, we’ll preserve our steadfast give attention to security, high quality and delivering for our prospects. We all know these selections will trigger issue for you, your households and our crew, and I sincerely want we might keep away from taking them. Nonetheless, the state of our enterprise and our future restoration require robust actions.

We will likely be clear with you concerning the timing and impression of those steps, and we will likely be skilled and supportive to everybody alongside the way in which. 

Thanks for all that you’re doing by means of this very difficult time at Boeing. We are going to navigate by means of this second. We are going to re-focus our firm, and we’ll restore belief with all those that depend upon us.

Kelly