Boeing will cut about 5% of its commercial plane workforce through layoffs and attrition, the company said on Monday. The cuts stem from a slower ramp-up in jet production to give factories and supply chain partners "additional time to achieve stability," according to Stephanie Pope, Boeing's commercial chief.
"Adjusting our production schedules and reducing aircraft output puts us in an overstaffed position," Pope said in a message to employees. Layoff notifications will begin in December.
Boeing in October signaled it would not meet its 2026 delivery target and pushed back plans to lift 737 Max production to 52 per month until the second half of 2027, rather than from 47 as previously scheduled. CEO Kelly Ortberg cited the need for greater predictability in wing production and fuselage manufacturing at the Kansas facility.
The company has faced financial losses from safety problems, including two deadly Max crashes in 2018 and 2019. Pope noted that Boeing certified the 737 Max 7 and 737 Max 10 this year but said the company "has not yet fully recovered."