Boeing cuts 5% of commercial airplane team amid production slowdown
Business
Boeing is trimming about 5% of its commercial airplane team, because building new planes is taking longer than expected.
The company says the slowdown left it with more staff than needed, so it is making cuts through both layoffs and people leaving on their own.
In a memo to employees, Stephanie Pope, who leads Boeing's commercial aircraft unit, shared that this move was not easy but is necessary to match its updated business plans.
Boeing delays 737 MAX ramp-up
Boeing is also pushing back its target for ramping up production of the 737 MAX jets.
Right now, it is making 47 planes a month and hopes to reach 52 per month by late 2027 instead of sooner.
Ortberg said Boeing does not expect to significantly ramp up 737 Max output until the second half of 2027.