Boeing announced on Monday that it intends to reduce its commercial aircraft workforce by approximately 5% as it adjusts to a more moderate production pace. The company plans to achieve these reductions through a combination of layoffs and staff attrition, aiming to provide its factories and supply chain partners with necessary time to reach operational stability. According to boeing will cut about 5% of its commercial plane workforce as it moderates the pace of ramping up jet production, the company, Monday.
Stephanie Pope, the head of Boeing’s commercial division, explained in a message to staff that current production adjustments and decreased aircraft output have resulted in an overstaffed environment. While noting that the company has not yet achieved a full recovery, Pope commended the team for recent successes, including the US certification of the 737 Max 7 and 737 Max 10 models this year. Layoff notifications are scheduled to begin in December, and the company has pledged to handle the process with dignity and respect. “Adjusting our production schedules and reducing aircraft output puts us in an overstaffed position,” she added.
The decision follows a broader shift in manufacturing strategy. During an October conference call, executives revealed that Boeing would miss its 2026 delivery targets and delay the ramp-up of 737 Max production to 52 planes per month until the second half of 2027. Increasing this output is critical for the firm’s financial growth, especially following years of significant losses linked to safety crises and the 2018 and 2019 fatal crashes. Saying in a late October conference call the company would no longer meet its target for 2026 deliveries and that it had pushed back the timef, boeing executives had previously signaled slower plans to raise plane output. Including two deadly Max crashes in 2018 and 2019, raising 737 Max output has been viewed by investors as central to revenue and profit growth after a long period of financial losses due to safety problems.
CEO Kelly Ortberg acknowledged in October that while the company is making progress, achieving full stability will likely take until next year. He specifically highlighted the need for improved predictability regarding fuselage production in Kansas and wing manufacturing processes.
