Boeing to lay off thousands of employees, CEO reveals other important decisions News24 –

Boeing will lay off about 10 percent of its global workforce, new CEO Kelly Ortberg told staff in a memo on Friday, Oct. 11, 2024. Boeing employs more than 1.7 thousand people in more than 65 countries. That means the latest round of layoffs will affect more than 17,000 people worldwide.

Those reductions will include executives, managers and employees, Kelly said in the memo. “Next week, your leadership team will share more tailored information about what this means for your organization. Based on this decision, we will not proceed with the next permit cycle,” Kelly added.

Kelly told employees: “We know these decisions will cause hardship for you, your families and our team, and I sincerely wish we could avoid making them.” The CEO blamed the state of Boeing’s business for those actions. He assured employees of transparency and provided them with all professional support during the process.

Boeing: Other important decisions

The company will face more delays in the launch of a new plane, the 777X. The company faces obstacles in the development process of the plane. Flight testing had been put on hold and the company is witnessing a work stoppage in progress. Boeing now expects the first delivery of the plane in 2026 instead of 2025.

Boeing will also stop production of the cargo version of its 767 jet (767 Freighters) in 2027. However, production of the KC-46A Tanker will continue, the CEO reported.

Boeing expects “substantial” further losses in the Boeing Defense, Space & Security (BDS) program this quarter. This is due to the work stoppage in trading derivatives and the continued challenges of the program. “At BDS, our performance on fixed price development programs is simply not where it needs to be,” the CEO said.

Remarkably, Boeing has lost more than $25 billion since the start of 2019. “We will refocus our company and restore trust with all those who depend on us,” the CEO concluded.

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