Staff,
Our enterprise is in a troublesome place, and it’s onerous to overstate the challenges we face collectively. Past navigating our present surroundings, restoring our firm requires powerful choices and we must make structural adjustments to make sure we will keep aggressive and ship for our prospects over the long run.
We should be clear-eyed concerning the work we face and life like concerning the time it can 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, somewhat than spreading ourselves throughout too many efforts that may usually end in underperformance and underinvestment.
With that in thoughts, at present I’m sharing some troublesome choices and several other program updates:
On the 777X program, the challenges we now have confronted in growth, in addition to from the flight take a look at pause and ongoing work stoppage, will delay our program timeline. Now we have notified prospects that we now anticipate 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 growth packages is just not the place it must be. We anticipate 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 can be offering extra oversight of this enterprise and these packages.
Together with the above actions, we should additionally reset our workforce ranges to align with our monetary actuality and to a extra targeted set of priorities. Over the approaching months, we’re planning to scale back the scale of our whole workforce by roughly 10 %. These reductions will embrace executives, managers and workers. Subsequent week, your management group will share extra tailor-made details about what this implies on your group. Primarily based on this choice, we is not going to proceed with the following cycle of furloughs.
As we transfer by this course of, we are going to preserve our steadfast give attention to security, high quality and delivering for our prospects. We all know these choices will trigger issue for you, your households and our group, and I sincerely want we may keep away from taking them. Nonetheless, the state of our enterprise and our future restoration require powerful actions.
We can be clear with you concerning the timing and affect of those steps, and we can be skilled and supportive to everybody alongside the way in which.
Thanks for all that you’re doing by this very difficult time at Boeing. We are going to navigate by this second. We are going to re-focus our firm, and we are going to restore belief with all those that rely upon us.
Kelly