Boeing Co. will temporarily halt production of the grounded 737 Max in January, a person familiar with the matter said, deepening the crisis engulfing the planemaker and posing a new threat to a vast web of suppliers.
No furloughs or layoffs are planned for the 12,000 workers at the Seattle-area plant where 737 Max jets are built, said the person, who asked not to be named because the details are still private.
The production pause deepens one of the worst crises in Boeing’s 103-year history, as the company waits for regulators to clear its best-selling plane to resume commercial flights. The factory shutdown will also ripple through a supplier base that stretches from the Seattle area to Kansas, adding a headwind for U.S. industry ahead of the 2020 elections.
Boeing didn’t immediately comment Monday. The timing of regulatory approval for the Max’s return is uncertain, with Boeing’s relationship with the U.S. Federal Aviation Administration in tatters after a rare public admonishment last week by the regulator.
The shares fell 1% to $323.60 after the close of regular trading in New York.
The Wall Street Journal reported earlier on Boeing’s plans to halt Max production.