Boeing to cut 5% of commercial jet workforce amid production struggles

Boeing announced on November 10 that it will reduce its commercial plane workforce by around five percent. The company is moderating its jet production pace in order to provide factories and supply chain partners with additional time to achieve stability. The workforce cuts will include a mix of layoffs and attrition. Boeing's commercial chief Stephanie Pope explained that adjusting production schedules and reducing aircraft output has left the company in an overstaffed position.

Pope commended the team for the improved operations, reflecting in the US certifications of the 737 MAX 7 and 737 MAX 10 this year. However, Pope acknowledged that the company has not yet fully recovered. She assured employees that the layoff notifications will be carried out with "dignity and respect" as Boeing proceeds with the plan, with notifications beginning in December.

Prior to the announcement, executives had signaled slower plans to raise plane output, stating that they would no longer meet their target for 2026 deliveries. The 737 MAX production target has been pushed back to the second half of 2027. Boeing executives view raising 737 MAX output as crucial for revenue and profit growth after a period of financial losses due to safety problems, including two deadly MAX crashes in 2018 and 2019.

CEO Kevin Ortberg noted on October 27 that the company is making progress, but still requires more time to achieve full stability at the current rate. Ortberg highlighted the need for greater predictability in wing production and fuselage production at its Kansas operation. Shares of Boeing fell slightly less than 0.1 percent after midday trading.