Boeing Trims Commercial Staff by 5%

Boeing announced on Monday that it will cut approximately 5% of the employees who design and build its commercial airplanes. The reduction affects about 2,500 workers within the company’s commercial airplanes unit, which employs more than 50,000 people.

Stephanie Pope, the chief executive officer of Boeing’s commercial airplanes division, explained in a note to employees that the company is unable to increase production rates as quickly as previously anticipated. She stated that adjusting production schedules and reducing aircraft output has created an overstaffed situation. Pope said the company must align its staffing levels with its revised business plan to address this imbalance.

The primary driver of the staff reduction is the delay in achieving a consistent monthly output of 47 737 Max aircraft. Although Boeing increased its 737 Max build rate over the past two years, the company has struggled in recent months to maintain that target. A specific challenge involves the insufficient production speed of wings for the 737 model.

Pope indicated that the company will reach the 5% reduction target through layoffs and by choosing not to fill currently open positions. Notifications for affected employees will begin in December. This move follows a period in which Boeing has fallen behind its main competitor, Airbus, in delivering commercial planes.

The decision comes as the company works to stabilize operations following a quality crisis in early 2024. During that period, a poorly installed panel detached from a 737 Max jet in flight, prompting renewed scrutiny of safety practices. Since then, Boeing has overhauled its procedures under the oversight of the Federal Aviation Administration.

Kelly Ortberg, who assumed the role of company CEO in the summer of 2024, has emphasized a commitment to quality over speed. Speaking to investor analysts last month regarding the quarterly financial statement, Ortberg noted that the company is not yet stably producing wings to support the monthly rate of 47 aircraft. He stated that the leadership team intends to focus on stability to avoid an unstable production situation.

The commercial airplanes group will proceed with the staffing changes as planned. The company aims to match its workforce size to the revised output levels while continuing to monitor the production of wings and other critical components.