An employee works on the surface of an overhead compartment at the Boeing Co. interiors responsibility building in North Charleston, South Carolina, U.S., on Tuesday, Dec. 6, 2016.
Photograph by Travis Dove—Bloomberg/Getty Images
By Reuters
December 19, 2016

Boeing’s commercial airplanes unit said on Monday it would reduce its workforce in 2017, adding to the about 8% jobs the company has cut since the beginning of 2016.

The company is offering a voluntary layoff program in early 2017, adding that involuntary layoffs may occur in some cases, Boeing Commercial Airplanes (BCA) said in an internal memo.

This year’s job cuts include a 10% reduction of executives and managers.

BCA (ba) said it would focus on reducing non-labor costs next year amid a tough competitive environment for its aircraft business.

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Boeing said last week that it would cut production of its twin-aisle 777 jetliner to five a month in August 2017, a 40% reduction from the current rate of 8.3% a month, as it spends more to produce new models.

Reuters reported in February that Boeing was considering layoffs of airplane engineers.

A spokesman for the division said that employees participating in the voluntary layoff program will receive a lump sum payment of one week’s pay for each year served, for a maximum of 26 weeks.

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