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Boeing To Cut Thousands Of Workers As Slower Factory Ramp Leaves It "Overstaffed" Less than two weeks after Boeing slashed its commercial aircraft delivery outlook, which sent shares tumbling, a report on Monday afternoon says the 737 planemaker is preparing to cut thousands of jobs .

CNBC cites Stephanie Pope, head of the commercial aircraft unit, who told employees in a memo today that Boeing will reduce its commercial airplane workforce size by 5% . She said the move comes as production ramp-ups for popular jets are moving more slowly than previously anticipated.

"Adjusting our production schedules and reducing aircraft output puts us in an overstaffed position ," she said in the note.

Pope said, "Unfortunately, that means we need to align our staffing levels to our revised business plan , resulting in a reduction of approximately 5% through a combination of attrition and involuntary layoffs, with notifications beginning in December."

She added, " We need to reset the pace of our production rate ramps to provide our factories and supply chain partners additional time to achieve stability."

Boeing's latest investor slide deck shows 50,494 workers in the commercial airplane unit, so a 5% reduction equals about 2,525 workers.

This planned cut marks the first workforce reduction since CEO Kelly Ortberg cut 17,000 jobs after joining the company in late 2024.

Boeing shares are stuck in a bear market, down about 20.5% year-to-date.