Boeing said Monday it plans to cut 5% of its commercial airplane workforce through a combination of attrition and involuntary layoffs, with notifications beginning in December, as its production ramp-up moves more slowly than expected.
Stephanie Pope, head of Boeing’s commercial aircraft unit, said in a memo to staff that the company is still working to stabilize production rates of its 737 Max planes. “Adjusting our production schedules and reducing aircraft output puts us in an overstaffed position,” Pope said. “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 CEO Kelly Ortberg said late last month that the plane maker does not expect to significantly ramp up output of its best-selling 737 Max until the second half of 2027, later than the company had anticipated. Boeing is targeting a production rate of 52 planes a month in that period. It has been manufacturing about 47 of its 737 Max planes a month.
The workforce reduction applies to Boeing’s commercial airplane unit. The 737 Max production rate remains below the company’s longer-term target.