Boeing to cut 5% of commercial airplane workforce as production increase is slower than expected

Summary

• Boeing plans to cut 5% of its commercial airplane workforce due to a slower-than-expected production ramp-up.
• The reductions will occur through a combination of attrition & layoffs, with notifications beginning in December.
• Stephanie Pope, head of the commercial aircraft unit, stated the cuts are necessary to align staffing levels with a revised business plan.
• The company continues to work on stabilizing production rates for its 737 Max planes.
• CEO Kelly Ortberg indicated that significant output increases for the 737 Max are not expected until the second half of 2027.
• Boeing targets a production rate of 52 planes a month in the second half of 2027, compared to the current rate of about 47 planes a month.