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Boeing CEO outlines structural changes amid ongoing challenges

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Boeing CEO outlines structural changes amid ongoing challenges
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Chris Raymond Executive Vice President President and Chief Executive Officer, Boeing Global Services | Boeing

Boeing CEO Kelly Ortberg addressed employees on October 11, 2024, regarding the company's current challenges and future direction. In a message to staff, Ortberg emphasized the need for structural changes to maintain competitiveness and fulfill customer expectations over the long term.

Ortberg outlined specific program updates that reflect Boeing's strategic adjustments. The 777X program faces delays due to development challenges, flight test pauses, and work stoppages. Consequently, first deliveries are now expected in 2026. Additionally, Boeing will complete existing orders for 767 Freighters before ending production of the commercial program in 2027. However, production of the KC-46A Tanker will continue.

The company anticipates significant new losses in its BDS segment this quarter due to fixed-price development program issues and other challenges. Ortberg announced he would provide more oversight of this business area.

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As part of aligning with financial realities and focusing priorities, Boeing plans a workforce reduction of approximately 10 percent across executives, managers, and employees. Ortberg assured employees that leadership would soon share detailed information about these changes within their respective organizations.

Ortberg acknowledged the difficulty these decisions pose for employees but stressed their necessity for business recovery. He committed to transparency throughout the process while maintaining focus on safety, quality, and customer delivery.

In closing his message to employees, Ortberg expressed gratitude: "Thank you for all that you are doing through this very challenging time at Boeing."

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