Boeing changes strategy: Lays off hundreds of employees, restarts production of 737 MAX – CNBC TV18

Amid financial struggles and workers’ strikes, Boeing has taken firm steps to cut its workforce by 10% and resume the production of 737 MAX.

Around 900 employees have been laid off in California and Washington.  Kelly Ortberg, the CEO of Boeing, has said that these layoffs are not a consequence of the strikes carried out by the machinists. Instead, it comes as a result of overstaffing.

Meanwhile, Boeing has also resumed the production of the 737 MAX jetliner. This jetliner was a Boeing bestseller and gives the debt-ridden a glimmer of hope that it would be able to meet the demands of airlines.

The 737 MAX garnered infamy after two devastating plane crashes in 2018 and 2019, which killed 346 people. These tragedies, along with the COVID-19 pandemic, was a massive setback for Boeing, disrupting supply chains.

Plans to expand the production of the 737 MAX was foiled again when a door panel with a few bolts missing flew off an Alaska Airlines 737 MAX.

The United States Federal Aviation Administration put a cap on the number of 737 MAXes that can be produced in a month. As of now, Boeing can only manufacture 38 jetliners of this variety.

The head of FAA, Mike Whitekar, refused to comment on when Boeing will be allowed to produce more than 38 737 MAZ jetliners.