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Boeing will lay off 17,000 staff and delay projects as the embattled plane-maker faces a series of challenges to its business.
Chief executive Kelly Ortberg told employees in an email the cuts "align with our financial reality".
"Over the coming months, we are planning to reduce the size of our total workforce by roughly 10 per cent," he said.
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"These reductions will include executives, managers and employees.
"Next week, your leadership team will share more tailored information about what this means for your organisation.
"Based on this decision, we will not proceed with the next cycle of furloughs."
Boeing employs about 170,000 workers worldwide.
Ortberg acknowledged the impact the cuts would have but maintained the future of the business required tough actions.
"We know these decisions will cause difficulty for you, your families and our team, and I sincerely wish we could avoid taking them," he said.
"However, the state of our business and our future recovery require tough actions."
Boeing shares have been on a decline this year and have fallen by 22.98 per cent in the past year.
The company is facing concerns over the safety and quality of its aircrafts, sparked by a cabin panel blowout in January and a problem spacecraft that forced NASA to leave two of its astronauts in space.
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Boeing is set to post its third quarter results on October 23 and expects a revenue of $17.8 billion ($AUD26.3 billion), GAAP loss per share of $14.77 and an operating cash flow of $1.9 billion.
The company acknowledged the figures were impacted by the ongoing International Association of Machinists and Aerospace Workers strikes.
More than 33,000 machinists have been on strike for several weeks at Boeing factories in Washington, Oregon and California.
Workers rejected Boeing's tentative contract which fell short of their demand for a 40 per cent pay rise over three years.
Ortberg has been forced to delay the delivery of its 777X aircraft to 2026 due to the ongoing industrial action, as well as a flight test pause.
He admitted the company is in a "difficult position, and it is hard to overstate the challenges we face".
"Beyond navigating our current environment, restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term," he said.
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