Boeing's best-selling aircraft is having its wings clipped in the wake of two deadly crashes.
The manufacturer plans to cut monthly production of the 737 MAX by nearly 20 percent.
Deliveries are already on hold, and about 370 of the aircraft are grounded globally.
This points to signs Boeing does not explect to fly again anytime soon.
This latest announcement will see monthly production slashed from 52 planes to 42, starting mid April with no confirmed end date.
But the company says workers won't lose their jobs.
Boeing has admitted shortcomings after investigators found striking similarities between the downing of an Ethiopian airlines jet and a Lion Air crash in Indonesia last year.
157 and 189 people were killed respectively.
In a statement, its CEO said the company will continue to make progress on a software update to prevent further accidents.
(SOUNDBITE) (English) BOEING CHAIRMAN, PRESIDENT, AND CEO, DENNIS MUILENBURG, SAYING: "We're taking a comprehensive, disciplined approach, and taking the time, to get the software update right.
We're nearing completion and anticipate its certification and implementation on the 737 MAX fleet worldwide in the weeks ahead." On Friday (April 5), shares in Boeing fell around two percent after markets closed, while shares in its parent company Spirit Aerosystems Holdings fell by 3.5 percent.
And according to sources familiar with the matter, the company now faces logistical problems as well.
It's running out of space to park the planes, which could be grounded for at least two months.