Boeing announced Monday that it will reduce its commercial airplane workforce by approximately 5% as the company continues to experience delays in ramping up production. The reductions will occur through a combination of attrition and involuntary layoffs, with affected employees to receive notifications beginning in December, according to a memo from Stephanie Pope, head of the commercial aircraft unit.
The company cited overstaffing as the primary reason for the reduction. Pope noted in her communication to staff that adjusting production schedules and reducing aircraft output has created a situation where the company maintains more employees than needed for current operational levels. The workforce realignment aims to match staffing levels with the company’s updated business plan.
Boeing has been working to stabilize production rates of its 737 Max aircraft, which are manufactured outside of Seattle. CEO Kelly Ortberg previously indicated to investors that the company does not anticipate significantly increasing Max production until the second half of next year. Wing production has been identified as a particular constraint affecting the overall production timeline.
The company is currently targeting a production rate of 52 planes monthly in the second half of 2027. Boeing has also been attempting to stabilize current output at approximately 47 of its 737 Max aircraft per month. The slower-than-expected production ramp reflects ongoing challenges in the company’s manufacturing operations and supply chain.
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