Boeing slashes close to 900 jobs amid broader workforce reduction

After announcing its plan to reduce its workforce by approximately 10%, Boeing has laid off hundreds of additional employees in Washington state and California. According to reports, around 400  employees were laid off in Washington state and more than 500 in California.

The decision, announced by CEO Kelly Ortberg in October 2024 to reduce the company's global workforce by approximately 10%, equating to about 17,000 positions. The decision is impacting  executives, managers, and employees across the company over the coming months

In addition to the workforce reduction, Boeing has pushed back the first delivery of its 777X aircraft to 2026, citing development challenges, a flight test pause, and ongoing work stoppage.

The company also plans to conclude production of the commercial 767 Freighter program in 2027 after fulfilling existing orders, although production of the KC-46A Tanker will continue.

Ortberg emphasised the necessity of these actions, stating, "We need to be clear-eyed about the work we face and realistic about the time it will take to achieve key milestones on the path to recovery."

He acknowledged the impact on employees and their families, saying, "We know these decisions will cause difficulty for you, your families and our team, and I sincerely wish we could avoid taking them. However, the state of our business and our future recovery require tough actions."

The aerospace giant is also facing substantial new losses in its Defense, Space & Security (BDS) sector, primarily due to work stoppage on commercial derivatives and ongoing program challenges.

Ortberg announced that he will be providing additional oversight of this business and its programs.

Boeing's leadership team will provide more detailed information to employees about the implications of these changes for individual organizations in the coming week.

The company has committed to maintaining its focus on safety, quality, and customer delivery throughout this transition period.

These measures come as Boeing faces ongoing challenges in its commercial and defence sectors, exacerbated by recent production issues and broader industry headwinds.

The company aims to streamline operations, reduce costs, and refocus on core priorities to enhance competitiveness and restore trust with stakeholders.

Ortberg concluded his message by stating, "We will navigate through this moment. We will re-focus our company, and we will restore trust with all those who depend on us." The company's ability to successfully implement these changes will be crucial in determining its path to recovery and future position in the aerospace industry.