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Boeing’s Commercial Jets Unit Is Cutting More Jobs Next Year

December 19, 2016

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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

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.