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Boeing Slashes Workforce by 5% Amid Production Woes
9 Nov
Summary
- Boeing will reduce commercial airplane workforce by 5% soon.
- Production rate ramps are being adjusted to achieve stability.
- This follows a decision to delay the 737 Max production increase.
Boeing Commercial Airplanes will reduce its workforce by 5%, impacting employees through attrition and voluntary layoffs starting next month. Boeing Commercial Airplanes CEO Stephanie Pope informed employees that adjusted production schedules and decreased aircraft output have led to overstaffing.
"We need to reset the pace of our production rate ramps to provide our factories and supply chain partners additional time to achieve stability," Pope stated. This workforce reduction follows Boeing's recent decision to postpone plans for increasing 737 Max narrowbody jet production until 2027.
The company had originally targeted the end of 2026 for this production increase. This marks the first significant workforce reduction since CEO Kelly Ortberg implemented cuts following his appointment in late 2024.
