Boeing to cut 5% of commercial plane staff on slower ramp-up plans

Boeing announced it will reduce about 5% of its commercial plane workforce as the company eases the pace of increasing jet production. The workforce cuts will consist of layoffs and attrition, aimed at giving the factories and supply chain partners more time to achieve stability. Stephanie Pope, Boeing's commercial chief, explained that the adjustment in production schedules and reduced aircraft output puts the company in an overstaffed position.

Despite recent improvements, Pope acknowledged that the company has not fully recovered and promised to treat employees with dignity and respect during the layoff notifications starting in December.

Boeing executives previously indicated a slower plan to increase plane output, stating that they would not meet their 2026 delivery target and delaying the lifting of 737 MAX production to 52 weeks in the second half of 2027. The decision to raise 737 MAX output has been seen by investors as crucial for revenue and profit growth following years of financial losses due to safety issues, including two deadly MAX crashes in 2018 and 2019.

CEO Kelly Ortberg, speaking on October 27, said that while progress is being made, more work remains to achieve full stability in the rate of recovery. Ortberg highlighted the necessity for better predictability in wing production and fuselage manufacturing at the company's Kansas operation.