Boeing to Cut About 5% of Commercial Airplanes Staff as 737 Max Ramp Slips to 2027

Stephanie Pope, who runs Boeing Commercial Airplanes, told employees in a memo on Monday that the reductions would combine attrition and layoffs. "Adjusting our production schedules and reducing aircraft output puts us in an overstaffed position," she wrote. She said the unit needed to align staffing with its revised business plan, "resulting in a reduction of approximately 5% through a combination of attrition and involuntary layoffs, with notifications beginning in December."

The memo did not say how many jobs would go. Pope said the business had made "substantial progress" but had "not yet fully recovered", and pointed to the US certification of the 737 Max 7 and 737 Max 10 this year. She said affected employees would be treated with "dignity and respect."

The cuts follow a reset of Boeing's production plans in late October. On that quarter's earnings call, the company said it would no longer meet its 2026 delivery target. It also pushed back plans to raise 737 Max output from about 47 aircraft a month to 52 until the second half of 2027. Chief executive Kelly Ortberg said Boeing needed more predictable wing production and fuselage production at its Kansas operations. "I'm expecting it'll take us into next year to get fully stable at this rate," he said on October 27.

The 737 Max is Boeing's best-selling aircraft, and investors see faster output as the main route back to growth in revenue and profit after years of losses tied to safety problems, including the two fatal Max crashes in 2018 and 2019. A slower ramp also matters to airlines waiting for narrowbody deliveries.

Boeing shares were down less than 0.1% after midday on Monday. Layoff notifications are due to begin next month.