Boeing workforce cuts will trim about 5% of the company’s commercial airplane staff, the planemaker said Monday, as its production ramp-up proceeds more slowly than anticipated.
Stephanie Pope, who leads Boeing’s commercial aircraft division, told employees in a memo that the reductions will come through a mix of attrition and layoffs. She said the unit remains focused on stabilizing production of the 737 Max, which is assembled outside Seattle.
Chief Executive Kelly Ortberg told investors last month that Boeing does not expect a significant increase in Max output until the second half of next year, noting that wing production has lagged expectations.
“Adjusting our production schedules and reducing aircraft output puts us in an overstaffed position,” Pope said in her note, adding that notifications for involuntary layoffs will begin in December. She said staffing must be aligned to a revised business plan, resulting in about a 5% reduction overall.
Boeing is aiming to reach a production rate of 52 aircraft per month in the second half of 2027. Ortberg said the company has been working to stabilize production at approximately 47 of its 737 Max jets per month.
Boeing workforce cuts follow slower 737 Max ramp-up
The company reiterated that stabilizing output of its best-selling narrowbody remains the priority as it navigates supply chain and manufacturing timing challenges tied to wing production. According to executives, the tempered ramp-up timeline necessitated the staffing changes announced Monday.
The focus on gradually increasing aircraft output mirrors efforts by other manufacturers to manage capacity and demand, such as Tesla Cybertruck production to wind down at Texas plant.
Boeing noted that details on workforce adjustments and production plans would be shared with employees and regulators through its standard communication channels and filings with the U.S. Securities and Exchange Commission.
The company’s commercial airplanes unit operates globally, with key operations near Seattle and additional facilities around the world, all overseen from its corporate base and supported by information on its main website at Boeing.