In Boeing, 777X program delayed, 767 Freighter production to end, and workforce reduction planned.
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| Boeing faces challenges in its BDS business and expects substantial new losses. Image Courtesy: Boeing |
Arlington, Virginia, USA--- October 12, 2024:
Boeing has announced a significant restructuring plan that includes job cuts and program changes in response to the company's ongoing challenges. In a message to employees, President and CEO Kelly Ortberg acknowledged the difficult decisions necessary to ensure Boeing's long-term competitiveness.
One of the most significant changes involves the 777X program, which has faced development and flight test delays. The expected first delivery has been pushed back to 2026, impacting the company's timeline for this important aircraft model.
Additionally, Boeing has decided to end production of the 767 Freighter in 2027. While the company will fulfill existing orders, this decision marks the end of the commercial version of the 767 program. However, production of the KC-46A Tanker will continue.
The company's Boeing Defense, Space & Security (BDS) business is also facing challenges. Boeing expects substantial new losses in this division due to program issues and the decision to end 767 Freighter production. Ortberg has announced that he will be providing additional oversight to this business and its programs.
To align with its financial reality and focus on core priorities, Boeing is reducing its total workforce by approximately 10%. This reduction will affect executives, managers, and employees across the company. The company plans to provide more specific information about the impact on individual organizations in the coming weeks.
Ortberg emphasized the importance of transparency and support for employees during this difficult time. While the decisions are necessary for Boeing's future, they will undoubtedly have a significant impact on the company's workforce.
Boeing's restructuring plan is a response to the challenges it has faced in recent years, including the grounding of the 737 MAX aircraft. The company is hoping that these changes will help it regain its position as a leading aerospace company and ensure its long-term success.