Today, I want to address the challenging position our business finds itself in. The obstacles we face are significant, and it’s crucial that we confront them head-on. In order to restore our company and navigate our current circumstances, we must make some tough decisions and implement structural changes that will help us remain competitive and continue delivering for our customers in the long run.
We need to approach our recovery with clear eyes, recognizing the hard work ahead and the time it will take to reach important milestones. It is essential that we concentrate our resources on performing and innovating in our core areas, rather than diluting our efforts across too many initiatives, which can lead to underperformance and insufficient investment.
With this in mind, I must share some difficult decisions and updates regarding our programs:
- 777X Program: We have encountered significant development challenges, along with the effects of the flight test pause and ongoing work stoppage. As a result, we are revising our program timeline and have informed our customers that we now anticipate the first delivery in 2026.
- 767 Freighter Production: We will complete the remaining orders for the 767 Freighters, but we will conclude production of this commercial program by 2027. Production of the KC-46A Tanker will continue as planned.
- BDS Performance: Our performance in fixed-price development programs is not where it needs to be. We expect to incur substantial losses in BDS this quarter due to the work stoppage on commercial derivatives and ongoing program challenges, compounded by our decision to finalize production on the 767 Freighter. I will be personally overseeing this business and these programs moving forward.
In addition to these actions, we must adjust our workforce levels to align with our financial reality and focus on our key priorities. Over the next few months, we plan to reduce our total workforce by approximately 10 percent. This will include reductions across executive, managerial, and employee roles. Your leadership team will provide more detailed information regarding these changes next week. As a result of this decision, we will not proceed with the next cycle of furloughs.
As we navigate this process, our commitment to safety, quality, and delivering for our customers will remain unwavering. I understand that these decisions will impact you, your families, and our team as a whole, and I truly wish we could avoid them. However, the current state of our business necessitates these difficult actions for our future recovery.
We will keep you informed about the timing and implications of these steps, and we are dedicated to being professional and supportive throughout this transition.
Thank you for your continued efforts during this challenging time at Boeing. Together, we will overcome these obstacles, refocus our company, and rebuild the trust of everyone who depends on us.
