Boeing's President and CEO, Kelly Ortberg, addressed employees to emphasize the significant challenges the company is currently facing. He highlighted the importance of making difficult decisions and structural changes to maintain competitiveness and continue serving customers in the long term.
Ortberg outlined updates on key projects, notably the 777X, which is experiencing development challenges and a pause in flight testing. Customers have been notified, with the first deliveries now expected in 2026. Additionally, Boeing plans to build and deliver the remaining 767 freighters ordered by customers, with commercial production set to conclude in 2027. The KC-46A tanker production will proceed as planned.
Boeing Defense, Space & Security (BDS) is underperforming on fixed-price development projects, leading to anticipated significant losses this quarter. These losses are attributed to halted commercial derivative projects, ongoing project challenges, and the decision to conclude 767 freighter production. Ortberg plans to oversee these projects more closely.
To align with financial realities and focus on prioritized objectives, Boeing will reduce its workforce by approximately 10% over the coming months. This reduction will involve executives, managers, and staff. The leadership team will provide further details soon, and no additional furloughs are planned following these layoffs.
