ARLINGTON, Va., Oct. 11, 2024 — Boeing [NYSE: BA] President and CEO Kelly Ortberg shared the following message with all employees today:

Team,

We’re in a tough spot right now. The challenges we’re facing are significant and require difficult decisions to overcome. To ensure we remain competitive and deliver for our customers in the long term, we need to make structural changes and address our current situation.

We must be realistic about the time it will take to recover and focus our resources on our core strengths, rather than spreading ourselves too thin. This will help us avoid underperformance and underinvestment.

With that in mind, here are some difficult decisions and program updates:

• The 777X program has faced developmental challenges, a flight test pause, and a work stoppage, which will delay our timeline. We’ve informed our customers that the first delivery is now expected in 2026.
• We plan to build and deliver the remaining 767 Freighters ordered by our customers, but we’ll conclude production of the commercial program in 2027. Production of the KC-46A Tanker will continue.
• In BDS, our performance on fixed-price development programs is not where it needs to be. We anticipate significant new losses this quarter due to the work stoppage on commercial derivatives, ongoing program challenges, and our decision to complete production on the 767 freighter. I’ll be providing additional oversight of this business and these programs.

In addition to these actions, we must adjust our workforce levels to align with our financial reality and our priorities. Over the coming months, we plan to reduce our total workforce by roughly 10 percent. This will affect executives, managers, and employees. Your leadership team will share more specific information about how this affects your organization next week. As a result of this decision, we will not proceed with the next cycle of furloughs. 

Throughout this process, we remain committed to safety, quality, and delivering for our customers.  We understand that these decisions will be difficult for you, your families, and our team. I sincerely wish we could avoid them. However, the current state of our business and our future recovery require tough actions.

We will be transparent with you about the timing and impact of these steps, and we will be professional and supportive to everyone involved. 

Thank you for your hard work during this challenging time at Boeing. We will navigate through this moment. We will refocus our company, and we will restore trust with all those who depend on us.

Kelly

Contact
Boeing Media Relations

SOURCE Boeing