Boeing plans to reduce its workforce by approximately 10% and has announced delays in key programs, including the 777X, as part of a comprehensive restructuring effort aimed at addressing ongoing challenges and positioning the company for future recovery.
The decision, announced by CEO Kelly Ortberg in a message to employees, will affect executives, managers, and employees across the company over the coming months.
In addition to the workforce reduction, Boeing has pushed back the first delivery of its 777X aircraft to 2026, citing development challenges, a flight test pause, and ongoing work stoppage. The company also plans to conclude production of the commercial 767 Freighter program in 2027 after fulfilling existing orders, although production of the KC-46A Tanker will continue.
Ortberg emphasised the necessity of these actions, stating, “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.”
He acknowledged the impact on employees and their families, saying, “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.”
The aerospace giant is also facing substantial new losses in its Defense, Space & Security (BDS) sector, primarily due to work stoppage on commercial derivatives and ongoing program challenges.
Ortberg announced that he will be providing additional oversight of this business and its programs.
Boeing’s leadership team will provide more detailed information to employees about the implications of these changes for individual organizations in the coming week.
The company has committed to maintaining its focus on safety, quality, and customer delivery throughout this transition period.
These measures come as Boeing faces ongoing challenges in its commercial and defense sectors, exacerbated by recent production issues and broader industry headwinds.
The company aims to streamline operations, reduce costs, and refocus on core priorities to enhance competitiveness and restore trust with stakeholders.
Ortberg concluded his message by stating, “We will navigate through this moment. We will re-focus our company, and we will restore trust with all those who depend on us.” The company’s ability to successfully implement these changes will be crucial in determining its path to recovery and future position in the aerospace industry.