Boeing announced Monday that it will reduce the 777 production rate from seven planes per month to five planes per month, beginning August 2017.
Despite a recent 777 deal with Iran Air, the market is “signaling near-term hesitation” for 777s, according to a message to 777 employees from Elizabeth Lund, vice president and general manager of the 777 program.
The decline in production is a continuing trend. Not long ago, 777 production was at 8.3 planes per month.
Lund wrote that the company expects the change to impact employment next year. The company has not determined how many positions will be eliminated. However, Lund wrote program leaders will try to “lessen the impact” of cuts.
Boeing said that the adjustment with also have a small impact on the company’s overall results this year, but they do not believe it will be significant enough to affect 2016 financial guidance.