Boeing said Monday that it plans to cut 5% of its commercial airplane workforce as its production ramp-up is moving at a slower pace than the company expected.
The cuts will be through a combination of attrition and layoffs, Stephanie Pope, head of the commercial aircraft unit, said in a memo to staff.
Pope reiterated that the company is still working to stabilize production rates of its popular 737 Max planes.
"Adjusting our production schedules and reducing aircraft output puts us in an overstaffed position," she said in the note. "Unfortunately, that means we need to align our staffing levels to our revised business plan, resulting in a reduction of approximately 5% through a combination of attrition and involuntary layoffs, with notifications beginning in December."
Boeing CEO Kelly Ortberg said late last month that the plane manufacturer doesn't expect to significantly ramp up output of its best-selling 737 Max aircraft until the second half of 2027, which is longer than the company had been expecting.
Boeing is targeting a production rate of 52 planes a month in the second half of 2027. It has been manufacturing about 47 of its 737 Max planes a month.
