Boeing is cutting 10 percent of its workforce

group,

Our business is in a difficult situation, and it is difficult to overstate the challenges we face together. In addition to navigating our current environment, restoring our company requires difficult decisions and we will need to make structural changes to ensure we can remain competitive and deliver for our customers over time.

We need to be smart about the task at hand and realistic about the time it will take to reach milestones on the road to recovery. We also need to focus our resources on performance and innovation in areas that are core to who we are, rather than spreading them across multiple endeavors that may result in inefficiencies and underinvestment.

With that in mind, today I’m sharing a few tough decisions and program updates:

For the 777X program, the challenges we have faced in development, as well as the suspension of flight tests and ongoing work stoppages, will delay our program timeline. We informed customers that we now expect the first delivery in 2026.

We plan to build and deliver the remaining 767 Freighters ordered by our customers and conclude commercial program production in 2027. Production of the KC-46A Tanker will continue.

At BDS, our performance in value added development programs is second to none. We expect a significant new loss at BDS this quarter, driven by work stoppages in some commercial operations, continued program challenges and our decision to end production on the 767 freighter. I will be providing more oversight of this business and these programs.

Along with the above actions, we must also realign our staffing levels to align with our financial reality and a more focused set of priorities. In the coming months, we plan to reduce our workforce by approximately ten percent. These reductions will include managers, supervisors and employees. Over the next week, your leadership team will share more personal information about what this means for your organization. Based on this decision, we will not continue with the next furlough cycle.

As we continue this process, we will maintain our unwavering focus on safety, quality and delivery for our customers. We know these decisions will be difficult for you, your families and our team, and I sincerely wish we could avoid making them. However, the state of our business and our recovery in the future requires tough actions.

We will be transparent with you about the timing and impact of these steps, and we will be professional and supportive to everyone along the way.

Thank you for all you are doing during this difficult time at Boeing. We’re going to wander around this moment. We will refocus on our company, and we will restore the trust of all who rely on us.

Kelly