Staff,
Our enterprise is in a troublesome place, and it’s arduous to overstate the challenges we face collectively. Past navigating our present setting, restoring our firm requires robust selections and we must make structural modifications to make sure we are able to keep aggressive and ship for our prospects over the long run.
We have to be clear-eyed concerning the work we face and real looking concerning the time it is going to take to realize key milestones on the trail to restoration. We additionally must focus our sources on performing and innovating within the areas which are core to who we’re, reasonably than spreading ourselves throughout too many efforts that may usually lead to underperformance and underinvestment.
With that in thoughts, at this time I’m sharing some troublesome selections and a number of other program updates:
On the 777X program, the challenges we now have confronted in improvement, in addition to from the flight check pause and ongoing work stoppage, will delay our program timeline. We have now notified prospects that we now count on first supply in 2026.
We plan to construct and ship the remaining 767 Freighters ordered by our prospects after which conclude manufacturing of the industrial program in 2027. Manufacturing for the KC-46A Tanker will proceed.
In BDS, our efficiency on fixed-price improvement applications is just not the place it must be. We count on substantial new losses in BDS this quarter, pushed by the work stoppage on industrial derivatives, continued program challenges and our choice to finish manufacturing on the 767 freighter. I might be offering extra oversight of this enterprise and these applications.
Together with the above actions, we should additionally reset our workforce ranges to align with our monetary actuality and to a extra centered set of priorities. Over the approaching months, we’re planning to cut back the scale of our whole workforce by roughly 10 %. These reductions will embody executives, managers and staff. Subsequent week, your management workforce will share extra tailor-made details about what this implies to your group. Based mostly on this choice, we won’t proceed with the following cycle of furloughs.
As we transfer by means of this course of, we’ll preserve our steadfast give attention to security, high quality and delivering for our prospects. We all know these selections will trigger issue for you, your households and our workforce, and I sincerely want we might keep away from taking them. Nevertheless, the state of our enterprise and our future restoration require robust actions.
We might be clear with you concerning the timing and impression of those steps, and we might be skilled and supportive to everybody alongside the way in which.
Thanks for all that you’re doing by means of this very difficult time at Boeing. We’ll navigate by means of this second. We’ll re-focus our firm, and we’ll restore belief with all those that rely upon us.
Kelly