Boeing CEO Kelly Ortberg unveiled a comprehensive restructuring plan on Friday, aimed at reviving the aerospace giant's competitiveness. The measures include a 10% workforce reduction, equivalent to approximately 17,000 employees, and significant production adjustments.
Key Highlights
Workforce Reduction: Layoffs to affect executives, managers, and employees across the company.
Production Changes: 777X airplane program delayed, 767 aircraft production halted after fulfilling existing orders.
Challenging Environment: Boeing faces labor disputes, manufacturing issues, and federal investigations.
CEO's Message
"Our industry is facing unprecedented challenges, and our company is not immune," Ortberg stated. "To ensure long-term success, we must make difficult decisions and implement structural changes."
Background
Ortberg, formerly head of Rockwell Collins, took the reins as Boeing CEO in August, succeeding Dave Calhoun. The company has struggled with production problems, regulatory scrutiny, and a mid-air panel blowout in January.
Timeline
- Layoffs to occur over the coming months.
- Production adjustments to take effect immediately.
Boeing's Path Forward
The restructuring aims to restore Boeing's competitiveness and delivery capabilities. Ortberg emphasized the need for swift action to navigate the current environment and secure the company's future.