Boeing to lay off 10 percent of employees

Team,

Our business is facing significant challenges, and it’s crucial for us to come together to tackle these obstacles. To ensure our company’s future success, we need to make tough decisions and implement structural changes that will enhance our competitiveness and ability to meet our customers’ needs in the long term.

We must approach our work with a clear understanding of the tasks ahead and a realistic view of the time required to achieve important milestones on our road to recovery. It’s imperative that we concentrate our efforts on key areas of our business that define our core strengths, instead of spreading ourselves too thin across multiple projects that could lead to underperformance and lack of investment.

In line with this strategy, I have some difficult decisions and program updates to share today:

Regarding the 777X program, we have faced challenges in development, along with a flight test pause and ongoing work stoppage, leading to a delay in our program timeline. Customers have been informed that we now anticipate the first delivery in 2026.

We intend to manufacture and deliver the remaining 767 Freighters ordered by our customers and then halt production of the commercial program in 2027. Production for the KC-46A Tanker will continue as planned.

Within BDS, our performance on fixed-price development programs has not met expectations. We anticipate significant new losses in BDS this quarter due to the work stoppage on commercial derivatives, ongoing program challenges, and our decision to finalize production on the 767 freighter. I will be increasing oversight of this business and its programs.

In addition to the above actions, we need to adjust our workforce levels to align with our financial situation and a more focused set of priorities. Over the next few months, we plan to reduce our total workforce size by approximately 10 percent, which will include executives, managers, and employees. Your leadership team will provide more detailed information on how this will impact your organization next week. As a result of this decision, we will not proceed with the next cycle of furloughs.

During this process, we will uphold our unwavering commitment to safety, quality, and meeting our customers’ needs. We understand that these decisions will pose challenges for you, your families, and our team, and I regret that we have to take such actions. However, the state of our business and our future recovery necessitate these tough measures.

We will be open with you about the timing and consequences of these steps, and we will offer professional and supportive guidance to everyone affected along the way.

Thank you for your dedication during this challenging period at Boeing. Together, we will navigate through this difficult time, realign our company, and rebuild trust with all those who rely on us.

Kelly