Boeing to cut 5% of its commercial aircraft workforce

Boeing announced Monday that it plans to cut 5% of its commercial aircraft workforce as its production ramp-up moves at a slower pace than the company expected.

The reductions will come through a combination of attrition and layoffs, Stephanie Pope, manager of the commercial aircraft unit, said in a memo to staff.

Pope reiterated that the company is still working to stabilize production rates of its best-selling 737 Max planes, manufactured outside of Seattle.

CEO Kelly Ortberg told investors last month that the company would not significantly increase production of the Max plane until the second half of next year. He said the company’s wing production has been slower than expected.

“Adjusting our production schedules and reducing aircraft production places us in a situation of overstaffing,” Pope said in his Monday memo. “Unfortunately, this means we must align our staffing levels with our revised business plan, which will result in a reduction of approximately 5% through a combination of attrition and involuntary redundancies, with notifications beginning in December.”

Boeing is targeting a production rate of 52 planes per month in the second half of 2027. Ortberg said the company is trying to stabilize production at a rate of about 47 of its 737 Max planes per month.