Boeing Plans 5% Commercial Airplane Workforce Cut as 737 Max Ramp Takes Longer Than Expected

Boeing plans to reduce its commercial airplane workforce by about 5% as its production ramp-up takes longer than expected. The company plans to use attrition and involuntary layoffs, with employee notifications expected to begin in December.

Stephanie Pope, head of Boeing’s commercial airplane unit, told employees in a memo Monday that revised production schedules and lower aircraft output had left the business overstaffed. “Adjusting our production schedules and reducing aircraft output puts us in an overstaffed position,” Pope said.

Boeing is working to stabilize 737 Max output at about 47 planes a month. CEO Kelly Ortberg told investors in October that Boeing did not expect a significant increase in 737 Max output before the second half of 2027. The company is targeting a rate of 52 planes a month in that period.

The Commercial Airplanes segment reported third-quarter revenue of $10.720 billion, down 3%, and an operating loss of $697 million in Boeing’s third-quarter results.