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Boeing will cut 5% of its commercial airplane workforce

Boeing announced it will cut 5% of its commercial airplane workforce through attrition and layoffs as its production ramp-up is moving slower than expected.

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The brief

Boeing said Monday that it plans to cut 5% of its commercial airplane workforce as its production ramp-up is moving at a slower pace than the company expected. The cuts will be through a combination of attrition and layoffs, Stephanie Pope, head of the commercial aircraft unit, said in a memo to staff. Pope reiterated that the company is still working to stabilize production rates of its best-selling 737 Max planes, which are made outside of Seattle. CEO Kelly Ortberg told investors last month that the company won't significantly increase production of the Max aircraft until the second half of next year. He said the company's wing production has been slower than expected. "Adjusting our production schedules and reducing aircraft output puts us in an overstaffed position," Pope said in her note Monday. "Unfortunately, that means we need to align our staffing levels to our revised business plan, resulting in a reduction of approximately 5% through a combination of attrition and involuntary layoffs, with notifications beginning in December." Boeing is targeting a production rate of 52 planes a month in the second half of 2027. Ortberg said the company has been trying to stabilize production at a rate of about 47 of its 737 Max planes a month.

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Quick answers

How many workers will Boeing cut?

Boeing will cut 5% of its commercial airplane workforce, according to the company's announcement.

How will the workforce cuts be implemented?

The cuts will be through a combination of attrition and layoffs, with notifications beginning in December, Stephanie Pope said in a memo to staff.

When does Boeing expect to increase production?

CEO Kelly Ortberg told investors last month that the company won't significantly increase production of the Max aircraft until the second half of next year, and Boeing is targeting a production rate of 52 planes a month in the second half of 2027.

Coverage (25)

Topics

Boeing Workforce Reduction Commercial Aviation 737 Max Production Delays

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