SEATTLE — Boeing intends to cut it’s commercial airplane workforce by 5% according to an internal company memo, according to several news and aviation industry websites.
The layoffs follow 3rd quarter earnings data and acknowledgements by Boeing CEO, Kelly Ortberg, that ramping up 737 airplane production is not going as fast as the plane maker had previously targeted.
The 5% workforce cut at BCA, revealed Monday, according to Aviation Week, is the second round of labor reductions since Ortberg became chief executive in 2024 and comes as the company continues to wrestle with integrating the former Spirit AeroSystems fuselage provider.
BCA employs around 51,000 workers. According to Aviation Week, on an assumed average salary of $100,000 a year—including senior managers—a 5% reduction of 2,500 employees would yield $250 million in pretax savings for Boeing.
The memo, according to industry sources, specifies that affected employees will begin receiving layoff notices in December.
The layoffs memo, attributed to Stephanie Pope, executive vice president of The Boeing Company and president and chief executive officer of BCA, states, “While we have made substantial progress, we have not yet fully recovered,” adding that the company would support workers through the “career transitions” ahead.
There was no immediate indication of how the layoffs will be distributed across BCA, or which categories of workers will be most impacted.
EverettPost.com has reached out to International Association of Machinists Local 751 for comment on the layoff impact and is awaiting a response.
Pope points to positive signs of change at BCA over the past two years, including certification of the 737 Max 7 and Max 10, as well as a broad culture shift focused on safety and quality.
This is a developing story and will be updated as new information is obtained.