Boeing plans to cut 5% of its commercial airplane workforce through attrition and layoffs. The company says its production ramp-up is moving slower than it expected.
Boeing said Monday it plans to cut 5% of its commercial airplane workforce because its production ramp-up is moving at a slower pace than the company expected.
Stephanie Pope, head of the commercial aircraft unit, told staff in a memo that the reductions will come through a combination of attrition and layoffs. Reuters, citing the Seattle Times, reported the same figure on Monday.
Slower 737 Max output leaves Boeing overstaffed
Pope wrote that adjusting production schedules and reducing aircraft output "puts us in an overstaffed position", according to CNBC's account of the memo. She added that notifications begin in December.
Boeing is still working to stabilize production rates of its popular 737 Max planes, Pope reiterated. As a result, the company is aligning staffing levels to its revised business plan.
Production target moves to the second half of 2027
Boeing CEO Kelly Ortberg said late last month that the company does not expect to significantly ramp up output of the 737 Max until the second half of 2027. That is longer than the company had been expecting.
The company is targeting a production rate of 52 planes a month in the second half of 2027. It has been manufacturing about 47 of the 737 Max planes a month.
Sources: CNBC, Reuters via Investing.com
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