Boeing will shrink its commercial airplane workforce by about 5% through layoffs and attrition, and it is slowing plans to build more jets, the head of the business told employees on Monday, Nov. 9. Layoff notices go out in December.
Stephanie Pope, chief executive of Boeing Commercial Airplanes, wrote in an email to staff that the company needs to "reset the pace of our production rate ramps" so its factories and suppliers have time to stabilize. "Adjusting our production schedules and reducing aircraft output puts us in an overstaffed position," she wrote. The whole company employs about 182,000 people, according to Boeing. The cut applies only to the commercial airplanes division, which builds the 737 MAX, 787 Dreamliner and 777X.
Why Boeing is slowing down
The jet business lost money last quarter.
In its October earnings release, Boeing reported $10.7 billion in commercial airplane revenue and a negative operating margin of 6.5%. It blamed in part higher projected costs tied to future changes in production rates and to its supply chain.
| Program | Where it stood in October |
|---|---|
| 737 MAX | Working toward stable output of 47 a month |
| 787 Dreamliner | Steady at 8 a month |
| 777X | First delivery still planned for 2027 |
What workers can expect
Boeing has not said how many people will lose their jobs. It also has not said which sites or kinds of jobs are affected, or how the cut splits between layoffs and attrition.
