Boeing is chopping 10 p.c of its workforce

Staff,

Our enterprise is in a tough place, and it’s onerous to overstate the challenges we face collectively. Past navigating our present setting, restoring our firm requires powerful selections and we should make structural modifications to make sure we are able to keep aggressive and ship for our prospects over the long run.

We must be clear-eyed concerning the work we face and lifelike concerning the time it’s going to take to attain key milestones on the trail to restoration. We additionally have to focus our assets on performing and innovating within the areas which can be core to who we’re, relatively than spreading ourselves throughout too many efforts that may usually end in underperformance and underinvestment.

With that in thoughts, immediately I’m sharing some tough selections and several other program updates: 

On the 777X program, the challenges now we have confronted in growth, in addition to from the flight take a look at pause and ongoing work stoppage, will delay our program timeline. We have now notified prospects that we now count on first supply in 2026.

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

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

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 scale of our whole workforce by roughly 10 p.c. These reductions will embody executives, managers and workers. Subsequent week, your management staff will share extra tailor-made details about what this implies on your group. Primarily based on this resolution, we won’t proceed with the following cycle of furloughs. 

As we transfer by this course of, we are going to keep our steadfast deal with security, high quality and delivering for our prospects. We all know these selections will trigger issue for you, your households and our staff, and I sincerely want we might keep away from taking them. Nonetheless, the state of our enterprise and our future restoration require powerful actions.

We will probably be clear with you concerning the timing and affect of those steps, and we will probably be skilled and supportive to everybody alongside the best way. 

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

Kelly