Boeing announced plans to reduce its commercial airplane workforce by approximately 5% due to slower-than-expected production growth, according to a statement from Stephanie Pope, head of the commercial aircraft unit, on Monday.
The reduction will be achieved through a combination of natural attrition and involuntary layoffs, with affected employees to receive notifications beginning in December. Pope indicated that the company’s adjusted production schedules and reduced aircraft output have created an overstaffed situation that necessitates workforce alignment with the revised business plan.
The adjustment comes as Boeing continues efforts to stabilize production rates of its 737 Max aircraft, the company’s bestselling model manufactured near Seattle. CEO Kelly Ortberg previously informed investors that significant production increases for the Max will not occur until the second half of next year. He attributed delays partly to slower-than-expected performance in wing production operations.
Boeing is currently targeting a production rate of 52 planes monthly in the second half of 2027, down from earlier expectations. The company has been working to stabilize output at approximately 47 of its 737 Max aircraft per month. The production challenges represent an ongoing recovery effort for the aircraft manufacturer as it works through operational constraints affecting its commercial aviation segment.
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