Boeing Co. said Monday that it will temporarily stop producing its grounded 737 Max jet starting in January as it struggles to get approval from regulators to put the plane back in the air.
The Chicago-based company said production would halt at its plant with 12,000 employees in Renton, Washington, near Seattle.
Boeing said it doesn't expect any layoffs as a result of the production halt "at this time." But layoffs could ripple through some of the 900 companies that supply parts for the plane.
The Max is Boeing's most important jet, but it has been grounded since March after crashes in Indonesia and Ethiopia that killed total of 346 people, and federal regulators told the company last week that it had unrealistic expectations for getting the plane back into service.
In a statement, Boeing said it will determine later when production can resume.
"We believe this decision is least disruptive to maintaining long-term production system and supply chain health," the statement said.
The company's stock came under pressure Monday after the Wall Street Journal reported on the possibility of a Max production halt. It closed Monday down $14.67, or 4.3%, at $327.
The stock has fallen 23% since the March 10 crash of a Max flown by Ethiopian Airlines.
The nose section of a 737 MAX
A group of Southwest Airlines Boeing 737 MAX 8 aircraft sit on the tarmac at Phoenix Sky Harbor International Airport on March 13, 2019 in Phoenix, Arizona. The United States has followed countries around the world and has grounded all Boeing 737 Max 8 aircraft following the crash of an Ethiopia Airlines 737 Max 8.
Kevin McAllister, who was ousted on October 21, 2019, after three years as CEO of Boeing Commercial Airplanes, in Renton, Wash., in November 2017.