Boeing CEO Addresses Employees on Future Challenges - Oct 2024
- Boeing's President and CEO Kelly Ortberg addressed employees about the company's challenging position and the need for realistic expectations regarding recovery.
- The company announced a delay in the 777X program, with first delivery now expected in 2026, and plans to conclude production of the 767 Freighters by 2027.
- To align with financial realities, Boeing will reduce its workforce by approximately 10%, affecting executives, managers, and employees.
On October 11, 2024, Boeing's President and CEO Kelly Ortberg delivered a message to employees outlining the company's current difficulties and the necessary steps for recovery. He emphasized the importance of being realistic about the challenges ahead and the time required to achieve key milestones. The company is facing significant delays in the 777X program, with first delivery now pushed to 2026 due to development challenges and ongoing work stoppages. In addition to the delays, Boeing plans to conclude production of the 767 Freighters by 2027 after fulfilling existing customer orders. The company is also experiencing substantial losses in its Defense, Space & Security (BDS) division, prompting Ortberg to take a more hands-on approach to oversight. The combination of these factors has led to the difficult decision to reduce the workforce by approximately 10%, impacting various levels of employees. Ortberg acknowledged the emotional toll these decisions would have on employees and their families but stressed the necessity of these actions to align with the company's financial reality. He assured employees that Boeing would maintain a focus on safety, quality, and customer delivery during this transition. The leadership team is expected to provide more specific information regarding the workforce reductions in the coming weeks. Ortberg concluded by expressing confidence in the company's ability to navigate through these challenges and restore trust with stakeholders.