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Boeing plans to cut 5% of its commercial airplane workforce through attrition and layoffs as production ramp-up for the 737 Max lags behind schedule. The company aims to stabilize output at 47 planes per month but targets 52 by mid-2027, according to CEO Kelly Ortberg.

Boeing Cuts 5% Commercial Workforce Amid Slower-than-Expected 737 Max Production

Boeing's decision to reduce staff follows a revised production timeline that has left the firm overstaffed, as stated by Stephanie Pope, head of its commercial aircraft unit. The company now expects to increase output for the Max only in the second half of next year, delaying revenue growth from the program.

The workforce cut reflects Boeing's struggle to meet production targets and highlights operational inefficiencies that could impact employee morale. Competitors like Airbus may gain market share if delays persist, according to industry analysts. The move also signals a strategic shift toward aligning staffing with delayed goals rather than aggressive expansion plans.

Boeing will begin notifying affected employees in December as it works toward achieving 52 planes per month by mid-2027. However, uncertainty remains about whether the company can meet its output targets amid ongoing production challenges.

Boeing will start informing impacted workers in December and aims to reach a monthly production rate of 52 planes for the 737 Max by mid-2027.

Boeing's workforce reduction underscores delays in its 737 Max program, but meeting revised output targets remains uncertain.

Topics: Aviation Industry, Workforce Cuts, Production Delays, Aerospace Manufacturing, Boeing Updates

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Source: CNBC