Boeing plans to reduce its commercial airplane workforce by approximately 5%, a move that will impact roughly 2,500 employees as the company struggles to meet production targets for its jetliner programs.
The decision follows a revision to production schedules that has left the division overstaffed, according to an internal memo sent to staff by Boeing Commercial Airplanes (BCA) Chief Stephanie Pope.
The workforce reductions will be implemented through a combination of involuntary layoffs and attrition. Notifications to affected staff are expected to begin in December at the earliest. In many U.S. states, Boeing is required to provide workers with 60 days’ notice.
The job cuts are directly tied to a slower-than-expected ramp-up in aircraft production. In a memo reported by CNBC, Pope explained that adjusting production schedules and reducing aircraft output has necessitated aligning staffing levels with a revised business plan.
New: @Boeing announcing iob cuts: “Unfortunately, that means we need to align our staffing levels to our revised business plan, resulting in a reduction of approximately 5% through a combination of attrition and involuntary layoffs, with notifications beginning in December” pic.twitter.com/yWuu2WCj7W
— Post by @davidshepardson on X
As shared in our third-quarter earnings, we need to reset the pace of our production rate ramps to provide our factories and supply chain partners additional time to achieve stability,
Pope stated.
Boeing’s ability to increase output of its bestselling 737 Max narrowbody jet has been a primary driver of these adjustments. CEO Kelly Ortberg previously indicated that the company would miss its 2026 production and delivery targets for the jetliner.
While Boeing had earlier hoped to reach a production rate of 47 jets per month by summer 2026, it now expects to achieve that pace in early 2027. The company is targeting a production rate of 52 planes per month, but it does not expect to reach that milestone until the second half of 2027.
Beyond the 737 Max, the company has faced challenges elsewhere in its lineup. It has struggled to increase production of the 787 widebody jet from eight to 10 aircraft per month, and both the 767 and 777 programs have encountered disruptions. These production hurdles come as the commercial unit faces financial strain; in the third quarter of 2026, the division reported roughly $10.7 billion in revenue but posted an operating loss of $697 million.
The production delays have also impacted the company’s long-term financial projections. Ortberg has stated that Boeing does not expect to reach $10 billion in free cash flow until 2029, a timeline that falls behind the 2028 target previously expected by analysts. For 2027, management has guided to approximately $3 billion in free cash flow, which is below prior analyst consensus.
Despite the workforce reductions and production struggles, Boeing maintains a massive order book. As of the end of the third quarter, the Commercial Airplanes backlog stood at more than 6,300 airplanes, valued at a record $612 billion. Following reports of the layoffs, shares of Boeing Co (BA) slipped about 1% on Monday, as investors reacted to the news of the slower production recovery. Yahoo Finance noted that the stock had dropped 21% year-to-date.
This reduction in the commercial workforce is the company's first major layoff since 2024, when it let go of 17,000 employees following a period of financial distress caused by a machinist strike and a door-sized panel blowout on an Alaska Air Group Inc 737 Max 9.