CEO announces workforce reduction and delays in key programs as part of a strategic effort to tackle challenges and regain competitiveness.
Boeing has revealed plans to reduce its workforce by approximately 10% and has announced delays for several key programs, including the 777X, as part of a major restructuring initiative designed to address ongoing difficulties and set the stage for future recovery.
In a message to employees, CEO Kelly Ortberg stated that this decision will impact executives, managers, and employees across the organization in the coming months.
Alongside the workforce reduction, Boeing has postponed the first delivery of its 777X aircraft until 2026, citing development challenges, a pause in flight testing, and ongoing work stoppages. The company will also wrap up production of the commercial 767 Freighter program in 2027 after completing existing orders, although production of the KC-46A Tanker will continue.
Ortberg highlighted the necessity of these measures, remarking, “We must be realistic about the work ahead and the time required to achieve critical milestones on the road to recovery.” He acknowledged the difficult impact on employees and their families, expressing, “I understand these decisions will be challenging for you, your families, and our team, and I genuinely wish we could avoid them. However, the state of our business and our future recovery demand difficult choices.”
The aerospace giant is also grappling with significant new losses in its Defense, Space & Security (BDS) sector, primarily due to stoppages in commercial derivative projects and ongoing program difficulties. Ortberg indicated that he would take a more active role in overseeing this division and its programs.
Boeing’s leadership team plans to share more detailed information with employees about how these changes will affect individual organizations in the coming week. The company remains committed to focusing on safety, quality, and customer delivery throughout this transition.
These actions come as Boeing confronts ongoing challenges in both its commercial and defense sectors, which have been worsened by recent production issues and broader industry challenges. The company aims to streamline operations, cut costs, and refocus on its core priorities to improve competitiveness and rebuild trust with stakeholders.
In closing, Ortberg assured, “We will navigate through this moment. We will refocus our company, and we will restore trust with all who rely on us.” The successful implementation of these changes will be critical in determining Boeing’s recovery trajectory and future standing in the aerospace sector.