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Boeing announced plans on Monday to reduce its commercial airplane workforce by 5%, citing slower-than-expected production rates. The cuts will involve a combination of layoffs and attrition, according to a memo from Stephanie Pope, head of the commercial aircraft unit. Layoff notices are set to begin in December, as reported by CNBC.
The company is working to stabilize production rates of its 737 Max planes, which are manufactured outside of Seattle. Boeing CEO Kelly Ortberg previously informed investors that the company will not significantly increase production of the Max aircraft until the second half of next year. The company aims to reach a production rate of 52 planes per month by the second half of 2027, according to The Seattle Times.
Pope explained that adjusting production schedules and reducing aircraft output has resulted in an overstaffed position. "Unfortunately, that means we need to align our staffing levels to our revised business plan," she said in her memo. Boeing's commercial airplane division employs nearly 35,000 people.
The decision comes after Boeing reported a larger-than-expected third-quarter loss and announced it would miss its 737 production and delivery targets for 2026. The company's stock fell 10.7% following the announcement, closing at its lowest level since April 2025, as noted by MyNorthwest.