Equipment,
Our business is in a difficult position and it is difficult to overstate the challenges we face together. Beyond navigating our current environment, restoring our business requires difficult decisions and we will need to make structural changes to ensure we can remain competitive and deliver for our customers over the long term.
We need to be clear-eyed about the work we face and be realistic about the time it will take to reach key milestones on the road to recovery. We must also focus our resources on performing and innovating in the areas that are core to who we are, rather than spreading ourselves across too many efforts that can often result in poor performance and underinvestment.
With that in mind, today I'm sharing some tough decisions and several program updates:
On the 777X program, the challenges we have faced in development, as well as the pause in flight testing and the ongoing work stoppage, will delay our program schedule. We have notified customers that we now expect first delivery in 2026.
We plan to build and deliver the remaining 767 freighters ordered by our customers and then conclude production of the commercial program in 2027. Production of the KC-46A tanker will continue.
At BDS, our performance on fixed-price development programs is simply not where it should be. We expect further substantial losses at BDS this quarter, driven by the work stoppage in trading derivatives, continued program challenges and our decision to complete production of the 767 freighter. I will provide additional oversight of this business and these programs.
Along with the actions above, we must also reset our workforce levels to align with our financial reality and a more focused set of priorities. In the coming months, we plan to reduce the size of our total workforce by approximately 10 percent. These reductions will include executives, directors and employees. Next week, your leadership team will share more personalized information about what this means for your organization. Based on this decision, we will not proceed with the next licensing cycle.
As we move forward in this process, we will maintain our strong focus on safety, quality and delivery to our customers. We know that these decisions will cause difficulties for you, your families, and our team, and I sincerely wish we could avoid making them. However, the state of our business and our future recovery require tough action.
We'll be transparent with you about the timing and impact of these steps, and we'll be professional and supportive of everyone along the way.
Thank you for everything you are doing during this very difficult time at Boeing. We will navigate through this moment. We will reorient our company and regain the trust of all those who depend on us.
kelly
