ARLINGTON, Va., Oct. 11,
2024 /PRNewswire/ -- Boeing [NYSE: BA] President
and CEO Kelly Ortberg shared the
following message with all employees today:
Team,
Our business is in a difficult position, and it is hard to
overstate the challenges we face together. Beyond navigating our
current environment, restoring our company requires tough decisions
and we will have to make structural changes to ensure we can stay
competitive and deliver for our customers over the long term.
We need to be clear-eyed about the work we face and realistic
about the time it will take to achieve key milestones on the path
to recovery. We also need to focus our resources on performing and
innovating in the areas that are core to who we are, rather than
spreading ourselves across too many efforts that can often result
in underperformance and underinvestment.
With that in mind, today I am sharing some difficult decisions
and several program updates:
- On the 777X program, the challenges we have faced in
development, as well as from the flight test pause and ongoing work
stoppage, will delay our program timeline. We have notified
customers that we now expect first delivery in 2026.
- We plan to build and deliver the remaining 767
Freighters ordered by our customers and then conclude
production of the commercial program in 2027. Production for the
KC-46A Tanker will continue.
- In BDS, our performance on fixed-price development
programs is simply not where it needs to be. We expect substantial
new losses in BDS this quarter, driven by the work stoppage on
commercial derivatives, continued program challenges and our
decision to complete production on the 767 freighter. I will be
providing additional oversight of this business and these
programs.
Along with the above actions, we must also reset our workforce
levels to align with our financial reality and to a more focused
set of priorities. Over the coming months, we are planning
to reduce the size of our total workforce by roughly 10
percent. These reductions will include executives, managers and
employees. Next week, your leadership team will share more tailored
information about what this means for your organization. Based on
this decision, we will not proceed with the next cycle of
furloughs.
As we move through this process, we will maintain our steadfast
focus on safety, quality and delivering for our customers. We
know these decisions will cause difficulty for you, your families
and our team, and I sincerely wish we could avoid taking them.
However, the state of our business and our future recovery require
tough actions.
We will be transparent with you regarding the timing and impact
of these steps, and we will be professional and supportive to
everyone along the way.
Thank you for all that you are doing through this very
challenging time at Boeing. We will navigate through this moment.
We will re-focus our company, and we will restore trust with all
those who depend on us.
Kelly
Contact
Boeing Media Relations
media@boeing.com
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SOURCE Boeing