Boeing plans to reduce its commercial aircraft workforce by about 5% as it slows the planned increase in jet production, The Guardian Business reported. The company announced the reductions on Monday, saying they would be achieved through both layoffs and attrition as production schedules are adjusted to give factories and supply-chain partners more time to stabilise operations.
In a message to employees, commercial aircraft chief Stephanie Pope said the revised schedules and lower aircraft output meant Boeing had more staff than it needed. Layoff notifications are due to start in December. Pope pledged that employees would be treated respectfully during the process, while acknowledging that the business had not completed its recovery despite substantial operational improvements.
Pope pointed to US certification of the 737 Max 7 and 737 Max 10 this year as evidence of the workforce’s progress, according to The Guardian Business. That progress has nevertheless been accompanied by a more cautious production timetable. Executives had already indicated during a late-October conference call that Boeing would miss its aircraft delivery target for 2026 and would take longer to reach its next planned increase in 737 Max output.
The company has postponed the move from a production rate of 47 to 52 until the second half of 2027. Investors have regarded higher 737 Max output as important to Boeing’s prospects for revenue and profit growth following an extended period of financial losses linked to safety problems. Those problems included the two fatal Max crashes in 2018 and 2019.
Chief executive Kelly Ortberg said in October that achieving full stability at the existing production rate was likely to take until the following year. He identified a need for more predictable wing production and fuselage manufacturing at Boeing’s Kansas operation. The workforce announcement follows those warnings about the work still required before production can increase further.