Boeing to cut 5% of commercial airplane workforce
Boeing is cutting about 5% of its commercial airplane workforce through attrition and involuntary layoffs beginning in December as it slows production rate increases. The reduction aims to align staffing with slowed output and provide factories and suppliers additional time to stabilize operations.
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Key takeaways
Boeing stabilizing 737 Max production at 47 airplanes per month with target of 52 per month in H2 2027
Boeing Commercial Airplanes delivered 161 airplanes in Q3 with backlog of more than 6,300 airplanes valued at record $612 billion
Production rate reductions driven by slower-than-expected wing production and need for supply chain stability
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Boeing said Monday, November 9, that it plans to cut about 5% of its commercial airplane workforce as it slows the pace of its production increases, CNBC reported. Stephanie Pope, head of Boeing Commercial Airplanes, announced the reduction in a memo to staff.
Adjusting our production schedules and reducing aircraft output puts us in an overstaffed position. — Stephanie Pope, Boeing Commercial Airplanes (via CNBC)
Pope wrote that the reduction will come through a combination of attrition and involuntary layoffs, with notifications beginning in December, according to CNBC. Boeing has not said how many jobs will be affected.
More time for factories and suppliers
Pope said Boeing needs to reset the pace of its production rate ramps to give its factories and supply chain partners additional time to achieve stability, Investing.com reported. CNBC reported that Boeing has been stabilizing 737 Max output at about 47 airplanes a month, with a target of 52 a month in the second half of 2027, and that wing production has been slower than expected.
In its third-quarter results on October 27, Boeing said the 737 program continues to progress toward stabilized production of 47 per month and that the 787 program remains stable at 8 per month. The company also reported that the 737-10 received FAA certification in October and that the 777X remains on track for first delivery in 2027.
A record backlog
Boeing Commercial Airplanes delivered 161 airplanes in the third quarter and ended the period with a backlog of more than 6,300 airplanes valued at a record $612 billion, according to the company. Boeing reported total third-quarter revenue of $24.2 billion, up 4% from a year earlier.
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