Boeing CEO’s Message to Employees

Boeing President and CEO Kelly Ortberg communicated an important message to all employees today regarding the current challenges facing the company.

Ortberg acknowledged that the business is in a difficult position and emphasized the need for tough decisions and structural changes to remain competitive and effectively serve customers in the long term. He stressed the importance of focusing resources on core areas rather than spreading efforts too thin, which can lead to underperformance and insufficient investment.

He outlined several significant updates:

• The 777X program will experience delays due to developmental challenges, a pause in flight testing, and an ongoing work stoppage, with first delivery now expected in 2026.
• Boeing will fulfill all remaining orders for the 767 Freighters and will conclude production of the commercial program by 2027, while continuing production on the KC-46A Tanker.
• In the BDS segment, performance on fixed-price development programs has not met expectations, resulting in anticipated substantial losses this quarter due to various factors, including the work stoppage on commercial derivatives. Ortberg noted he will be providing additional oversight of this business area.

To align the workforce with financial realities and focused priorities, the company plans to reduce its total workforce by approximately 10 percent. This will affect executives, managers, and employees. More specific information will be shared by leadership in the coming week, and the company will forego the next cycle of furloughs.

Ortberg reiterated the commitment to prioritize safety, quality, and customer delivery throughout this process. He expressed his regret that these decisions would cause hardship for employees and their families but underscored that they are necessary for the company’s future recovery.

Boeing leadership will keep employees informed about the timing and impact of these changes and will provide support throughout the transition.

Ortberg concluded by thanking employees for their dedication during this challenging time and reaffirmed the company’s commitment to navigate through the current situation, refocus operations, and restore trust with stakeholders.