Boeing is reducing 10 % of its workforce

Staff,

Our enterprise is in a tough place and it’s tough to overstate the challenges we face collectively. Along with managing the present scenario, rebuilding our firm requires tough choices and we should make structural adjustments to make sure we are able to stay aggressive and supply for our clients in the long run.

We have to be clear in regards to the work forward and reasonable in regards to the time it is going to take to realize key milestones on the street to restoration. We additionally have to focus our sources on effectivity and innovation within the areas which can be key to us, moderately than spreading ourselves too skinny, which may typically result in low productiveness and underinvestment.

With that in thoughts, at present I am going to share some powerful choices and some program updates:

With respect to the 777X program, the challenges now we have encountered throughout improvement, in addition to the pause in flight testing and the continued shutdown, 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 to our clients after which full business program manufacturing in 2027. Manufacturing of the KC-46A tanker will proceed.

At BDS, our efficiency on fastened worth improvement packages is solely lower than par. We count on vital new losses for BDS this quarter, pushed by the halt in business derivatives actions, ongoing program points and our resolution to finish manufacturing of the 767 freighter. I’ll present further 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 a extra targeted set of priorities. We plan to scale back our workforce by roughly 10 % within the coming months. These cuts will have an effect on executives, managers and workers. Subsequent week, your management will share extra particulars about what this implies in your group. Primarily based on this resolution, we is not going to be shifting ahead with the subsequent furlough cycle.

As we undergo this course of, we’ll proceed to keep up a robust concentrate on security, high quality and supply for our clients. We all know these choices shall be tough for you, your households and our workforce, and it’s my honest want that we may keep away from making them. Nevertheless, the state of our enterprise and our future restoration require powerful motion.

We shall be clear with you in regards to the timing and penalties of those steps, and we shall be skilled and supportive of everybody alongside the way in which.

Thanks for all you do at Boeing throughout this very difficult time. We are going to get by way of this second. We are going to refocus our firm and restore belief with everybody who is determined by us.

Kelly