Boeing to cut 5% of Commercial Aircraft Workforce

Boeing Commercial Airplanes head Stephanie Pope announced that the business unit will cut 5% of its workforce by year-end. The reduction in force will combine layoffs and attrition, as detailed in an email to employees. About 50,500 employees work in the commercial airplanes division, so a 5% reduction would entail about 2,525 employees.

Delayed Ramp-Up for Boeing 737MAX

Boeing executives indicated that the company is delaying its ramp-up targets. The company no longer plans to reach rate 47 for the MAX by year-end. Planned increases to 52 and 57 aircraft per month will be pushed deeper into 2027 and 2028. The company worked closely with the FAA to develop quality metrics that tie production rates to quality. Those measures continue to define how quickly the company could ramp 737 MAX production.

Earlier this year, the FAA returned control of the rate ramp process to Boeing. With internal and external difficulties supplying parts, Boeing needed to “reset the pace of our production rate ramps,” according to Pope. “Adjusting our production schedules and reducing aircraft output puts us in an overstaffed position. Unfortunately, that means we need to align our staffing levels to our revised business plans,” said Pope.

In its latest earnings call, Boeing said it would not meet its target for 737 MAX deliveries and that it would now increase MAX production in mid-2027. CEO Kelly Ortberg had previously identified the Renton wing factory as a choke point in delaying planned rate increases. The new North line in Everett has begun production of the MAX 10, but it must earn its FAA production certificate before it can deliver aircraft.