Boeing to lay off 5% of workers in its commercial airplane division as company weathers yet more turbulence

As CNBC reports, some people will be notified that their roles have been eliminated, while other cuts will be achieved through attrition (not replacing jobs that are vacated).

CEO Kelly Ortberg said on an earnings call last month that the company is delaying the ramp-up of manufacturing for its Max aircrafts to the second half of 2027, and that the manufacture of airplane wings is proceeding slower than expected.

“Unfortunately, that means we need to align our staffing levels to our revised business plan,” Boeing’s head of its commercial aircraft unit, Stephanie Pope, said in a statement.

This marks another bump amid several challenging years for Boeing.

Tempers flew high inside Boeing

This time last year, Ortberg unleashed his frustration with the company’s employees during a company-wide meeting, The Wall Street Journal reported.

“We spend more time arguing amongst ourselves than thinking about how we’re going to beat Airbus,” Ortberg said about the company’s European rival.

The firm had been reeling from several high-profile disasters, chief among which are its 737 Max 8 planes, which were involved in two crashes, in 2018 and 2019. The crashes resulted in 346 deaths. It was also coping with repeated labour disruptions, including a machinist strike.

Ortberg blamed the work culture of deflecting responsibility, overspending, and overpaid managers, according to the WSJ.

“Don’t sit at the water cooler and b—h about people,” Ortberg told employees on the call. “We’re at a low here, folks.”

Getting by at work during stressful times

All companies, even those far less embattled than Boeing, have to pay attention to interpersonal dynamics among employees. And anyone employed a medium-size or large firm would do well to think about how they can contribute to a healthy culture.