Boeing CEO Message to Employees on Positioning for the Future

ARLINGTON, Va., Oct. 11, 2024 /PRNewswire/ — Boeing [NYSE: BA] President and CEO Kelly Ortberg shared the next message with all staff right this moment:

Staff,

Our enterprise is in a tough place, and it’s onerous to overstate the challenges we face collectively. Past navigating our present atmosphere, restoring our firm requires robust selections and we should make structural adjustments to make sure we will keep aggressive and ship for our prospects over the long run.

We have to be clear-eyed in regards to the work we face and practical in regards to the time it’s going to take to realize key milestones on the trail to restoration. We additionally have to focus our sources on performing and innovating within the areas which are core to who we’re, moderately than spreading ourselves throughout too many efforts that may typically lead to underperformance and underinvestment.

With that in thoughts, right this moment I’m sharing some tough selections and a number of other program updates: 

• On the 777X program, the challenges we have now confronted in growth, in addition to from the flight check pause and ongoing work stoppage, will delay our program timeline. We’ve 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 business 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 count on substantial new losses in BDS this quarter, pushed by the work stoppage on business derivatives, continued program challenges and our determination to finish manufacturing on the 767 freighter. I might 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 cut back the dimensions of our complete 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 on your group. Primarily based on this determination, we won’t proceed with the subsequent cycle of furloughs. 

As we transfer by means of this course of, we are going to preserve our steadfast deal with 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. Nonetheless, the state of our enterprise and our future restoration require robust actions.

We might be clear with you concerning the timing and influence 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 are going to navigate by means of 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

Contact
Boeing Media Relations
[email protected]

SOURCE Boeing