From CNBC · Leslie Josephs · · 1m 10s
Boeing cuts 5% of commercial airplane workforce
Boeing is laying off about 5% of its commercial airplane workers as production ramp-up of the 737 Max moves slower than expected.
In brief
Boeing is laying off about 5% of its commercial airplane workers as production ramp-up of the 737 Max moves slower than expected. Boeing will cut 5% of its commercial airplane workforce through attrition and layoffs because production increases are taking longer than planned. Originally reported by CNBC.
Boeing announces 5% workforce cut
Boeing said Monday it plans to cut 5% of its commercial airplane workforce through a combination of attrition and layoffs.Stephanie Pope, head of the commercial aircraft unit, announced the decision in a memo to staff.
Production ramp-up slower than expected
The cuts come as Boeing's production ramp-up is moving at a slower pace than the company expected.The plane maker is still working to stabilize production rates of its best-selling 737 Max planes, made outside Seattle.
Overstaffed for revised production plan
Pope said adjusting production schedules and reducing aircraft output puts Boeing in an overstaffed position. Notifications of layoffs will begin in December, she said in her memo.
“Adjusting our production schedules and reducing aircraft output puts us in an overstaffed position.”
Production targets pushed to late 2027
CEO Kelly Ortberg told investors last month the company won't significantly increase Max production until the second half of next year.
The takeaway
Boeing will cut 5% of its commercial airplane workforce through attrition and layoffs because production increases are taking longer than planned.
