Boeing has reportedly executed more substantial cuts than anticipated in its strategy teams. Reuters reported that the aerospace giant has reduced the number of planners in key divisions by at least 50%, emphasizing its renewed focus on navigating operational pressures.

This decision follows Boeing's recent appointment of Stephanie Pope as Chief Operating Officer, signaling a shift in industrial priorities. Pope, the current head of Global Services, is now in line to potentially succeed Dave Calhoun as CEO.

(Photo : GEOFFROY VAN DER HASSELT/AFP via Getty Images)
A logo of US aircraft maker Boeing is displayed during the International Paris Air Show at the ParisLe Bourget Airport, on June 20, 2023.

50% Reduction in Strategy Teams of Boeing

Boeing has been confronting supply disruptions, compounded by nearly $40 billion in debt resulting from the COVID-19-related decline in travel and the previous 737 MAX safety crisis. 

As part of its restructuring in November, Boeing announced the departure of Marc Allen, the Chief Strategy Officer, with some of his planning team reassigned to various divisions. 

In a memo on November 16, Calhoun highlighted the goal of "enabling and empowering our business units," with strategists directly integrating into the units they support.

Despite this restructuring, insiders told Reuters that divisions such as Boeing Global Services and Boeing Commercial Airplanes are expected to experience a reduction of at least 50% in the number of strategists engaged in day-to-day operations.

The exact total of affected employees remains undisclosed. Notably, the move has been reported to be swift, with some strategists instructed not to return to work upon receiving the 60-day notices. While job search advice will be provided, the sources told Reuters that the total number of job cuts across the company is unknown.

At the Defense division, plans for consolidation are unfolding at a slower pace as the company merges strategy and business development. However, a similar level of cuts, exceeding 50%, is also anticipated in this sector.

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Boeing Confirms the Internal Consolidation

Boeing has acknowledged the internal consolidation within its Defense division but refrained from commenting on the overall number of job cuts. 

A spokesperson noted that aligning strategy teams directly with business units is part of a broader initiative undertaken over several years to simplify the corporate structure and allocate resources more effectively to support business operations. 

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