Boeing Plans 2,500 Commercial-Aircraft Job Cuts

Boeing plans to cut about 5% of its commercial-airplanes workforce, or roughly 2,500 positions, as it adjusts to slower-than-expected production growth. The division employs more than 50,000 people and makes aircraft including the 737 Max.

Stephanie Pope, head of the commercial unit, told employees the revised production plans leave the business with more staff than it needs. The company will make the reductions through a mix of layoffs and attrition, including not replacing some employees who leave. Notifications to affected workers are due to start in December.

Boeing has been working to increase output of the 737 Max, but has not reached its goal of producing 47 planes a month. Chief Executive Kelly Ortberg said last month that the company was not yet consistently producing enough wings to support that rate, and that it needed more time to stabilize production.

The commercial division brought in 44% of Boeing’s revenue in the latest quarter but recorded a loss of $697 million. The company’s Defense & Space and Global Services businesses were profitable in that period.

Boeing said it would offer affected employees career-transition services, layoff benefits and employee assistance. Pope said the company would seek to treat staff with dignity and maintain its focus on safety and quality as it continues its recovery.