Boeing will slash 10 percent of its workforce and delay delivery of its 777X wide-body jetliner for a year according to a letter to employees from President and CEO Kelly Ortberg.
17,000 jobs will reduced across executives, managers and employees of Boeing.
Ortberg said the company “is in a difficult position” and needs to “make structural changes to ensure we can stay competitive and deliver for our customers over the long term.”
Those changes include the following:
- 777X program: Program delayed. Notified customers to expect first delivery in 2026.
- 767 Freighters: Plan to build and deliver the remaining aircraft ordered then conclude production of the commercial program in 2027. Production of the KC-46A Tanker continues.
- BDS (Boeing Defence, Space & Security) expecting substantial new losses this quarter.
Boeing is also dealing with large-scale industrial action by factory workers, which has now moved into its fourth week.
