Boeing to Cut 10% of Workforce

Team,

Our business is facing significant challenges that require tough decisions and structural changes to ensure our long-term competitiveness and customer delivery. As we navigate through these difficult times, it is crucial to focus on key milestones and core areas of innovation to drive our recovery forward.

Today, I am sharing important updates and decisions that will impact our programs and workforce:

Program Updates

For the 777X program, challenges in development and ongoing work stoppages will delay our timeline, with first delivery now expected in 2026. We will fulfill remaining 767 Freighters orders and conclude commercial program production by 2027, while continuing KC-46A Tanker production.

In BDS, performance on fixed-price development programs is below expectations, resulting in anticipated losses. We will provide additional oversight and address program challenges to improve performance.

Workforce Reduction

To align with financial realities and focus on key priorities, we plan to reduce our total workforce by approximately 10%. Executives, managers, and employees will be affected, and tailored information will be shared with teams next week. Furloughs will not proceed due to this decision.

Throughout this process, our commitment to safety, quality, and customer delivery remains unwavering. While these decisions may bring challenges, they are essential for our future recovery and success.

Conclusion

Thank you for your dedication during these challenging times. By staying transparent, professional, and supportive, we will navigate through this together, refocus our company, and rebuild trust with all stakeholders.

Kelly

FAQs

Q: What is the timeline for the 777X program delivery?

A: First delivery is now expected in 2026 due to development challenges and ongoing work stoppages.

Q: How will the workforce reduction impact employees?

A: Approximately 10% of the total workforce will be affected, including executives, managers, and employees. Tailored information will be shared with teams next week.

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