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Renton braces for Boeing 737 MAX production shutdown
Renton braces for Boeing 737 MAX production shutdown
RENTON, Wash. -- Boeing will be reassigning some employees that support the production of the troubled 737 MAX jet. The company said employee move notices were being sent out on Monday.
Production of the 737 MAX is being temporarily suspended later this month at the Renton facility.
No layoffs or furlough are planned, Boeing said in an email sent to employees:
Boeing said it was unclear when production of the 737 MAX would resume.
“We are committed to making this transition as smooth as possible, and returning all of our teams to their home organizations once production starts again,” said Mark Jenks, vice president and general manager of the 737 program and Renton site.
Hundreds of 737 Max jets are sitting, grounded, as Boeing awaits approval from aviation regulators for the troubled plane to return to flight
The plane was grounded worldwide in March after two crashes that killed 346 people. The company determined a software fix was likely to correct the issue with the automatic safety feature that caused the crashes.
Orders for the 737 Max dried up following the grounding, and it wasn't until November that Boeing recorded its first new orders since the grounding. In the meantime, the company had continued to produce the planes at a rate of 42 jets a month, in hopes of a quick recertification by airline regulators around the globe.
But as the process was pushed into 2020, Boeing said the plane's uncertain future had forced it to pause production and prioritize the delivery of the approximately 400 airplanes it has in storage.
CNN contributed to this story.