Boeing is reducing 10 p.c of its workforce

Workforce,

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

We must be clear-eyed in regards to the work we face and lifelike in regards to the time it can 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, quite than spreading ourselves throughout too many efforts that may typically end in underperformance and underinvestment.

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

On the 777X program, the challenges we’ve confronted in growth, in addition to from the flight check pause and ongoing work stoppage, will delay our program timeline. We have now notified clients that we now count on first supply in 2026.

We plan to construct and ship the remaining 767 Freighters ordered by our clients 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 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 business derivatives, continued program challenges and our determination to finish manufacturing on the 767 freighter. I will likely 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 targeted 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 staff. Subsequent week, your management crew will share extra tailor-made details about what this implies to your group. Based mostly on this determination, we won’t proceed with the subsequent 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 clients. We all know these selections will trigger issue for you, your households and our crew, and I sincerely want we may keep away from taking them. Nevertheless, the state of our enterprise and our future restoration require robust actions.

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

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