Boeing To Cut 5 Pct Of Commercial Aeroplane Workforce As Production Ramp-up Slows

ISTANBUL, Nov 10 (Bernama-Anadolu) -- Boeing plans to reduce its commercial aeroplane workforce by approximately 5 per cent as slower production increases leave the division overstaffed, according to a message to employees from its chief Stephanie Pope, Anadolu Ajansi (AA) reported.

The reduction will involve a combination of attrition and involuntary layoffs, with notifications beginning in December, said Pope, the president and CEO of Boeing Commercial Aeroplanes.

“Adjusting our production schedules and reducing aircraft output puts us in an overstaffed position,” she wrote.

Pope said Boeing needs to slow the pace of planned production increases to give its factories and supply chain partners additional time to achieve stability, following adjustments outlined in its third-quarter earnings.

“Unfortunately, that means we need to align our staffing levels to our revised business plan,” she added.

The cuts come two weeks after Boeing pushed back a planned increase in 737 MAX production into 2027 from the end of this year, sending its shares to an 18-month low.

Executives also said the company would miss its year-end delivery targets for both the 737 and the 787 Dreamliner.

The move marks the first workforce reduction since Chief Executive Kelly Ortberg announced plans to cut 17,000 jobs in 2024, shortly after taking the helm.

Boeing was then grappling with severe financial pressure from a machinists’ strike and the fallout from a door plug blowing out of an Alaska Airlines 737 MAX 9 during flight earlier that year.

The announcement follows two years of investment in personnel, training, and infrastructure aimed at stabilising the business and supporting its recovery.

Pope said those investments, alongside employees’ efforts, had helped improve quality and delivery performance, secure certification of the 737-7 and 737-10 aircraft, and bring positive changes to the company’s culture.

“While we have made substantial progress, we have not yet fully recovered,” she said.

Boeing will offer affected employees company-sponsored outplacement services, layoff benefits and support through its Employee Assistance Program, according to the message.

-- BERNAMA-ANADOLU