Aircraft manufacturer Boeing is laying off 5% of its commercial airplanes division, which ran at a nearly $700 million loss last quarter.
Stephanie Pope, Boeing’s commercial aviation chief, told employees in a memo that “we need to reset the pace of our production rate ramps to provide our factories and supply chain partners additional time to achieve stability. Adjusting our production schedules and reducing aircraft output puts us in an overstaffed position,” according to Reuters.
Boeing Commercial Aviation accounted for 44% of the company’s total revenue last quarter, but it also ran at a $697 million loss. The division has about 50,000 employees and is expected to lay off 2,500 people, Business Insider reported.
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The job cuts, Ms. Pope told employees, will be “a combination of attrition and involuntary layoffs, with notifications beginning in December,” CNBC reported.
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