CEO Kelly Ortberg announced the news in a message to employees where he admitted Boeing is in a difficult position, which means programmes have been updated.
The 777X programme has been delayed due to flight test delays and the International Association of Machinists and Aerospace Workers (IAM) work stoppage, with the first 777-9 deliveries due in 2026 and the 777-8F has been delayed from 2027 to 2028.
Boeing will build and deliver the remaining 767Fs then conclude production in 2027.
In his message to employees, Ortberg said Boeing needs to make tough decisions and make structural changes to ensure the company’s survival.
He said Boeing needs to focus resources on performance and innovation in core areas, rather than spreading efforts too thin, which results in underperformance and underinvestment.
Boeing will also reduce its workforce by around 10% in the coming months among executives, managers and employees.
The announcement comes ahead of third quarter results, which will be announced on 23 October with Boeing expecting to announce revenue of $17.8 billion and a GAAP loss per share of $9.97.
Ortberg says, “These decisive actions, along with key structural changes to our business, are necessary to remain competitive over the long term. We are also focusing on areas that are critical to our future and will ensure we have the balance sheet necessary to invest, support our people and deliver for our customers.”