Boeing plans to cut approximately 5% of its commercial airplanes workforce, putting around 2,500 jobs at risk, as the aircraft manufacturer struggles to increase production at the pace originally planned.
In an internal memo to employees obtained by Business Insider, Stephanie Pope, CEO of Boeing Commercial Airplanes (BCA), attributed the decision to revised production schedules and lower aircraft output. She said the division had become overstaffed because factories and supply chain partners needed more time to stabilise operations.
The job reductions will involve a combination of employee attrition and involuntary layoffs, with notifications scheduled to begin in December 2026.
The decision comes as Boeing continues its recovery from a prolonged quality and safety crisis, while efforts to ramp up production of its popular 737 Max aircraft take longer than expected.
Why Boeing is reducing its commercial aircraft workforce
Boeing's Commercial Airplanes division is its largest business, employing approximately 50,000 people. A 5% workforce reduction would therefore affect around 2,500 employees.
Pope explained in her memo that the company had invested in talent, training and infrastructure over the past two years to stabilise the business and strengthen its operations.
These investments had contributed to improvements in quality, delivery performance and organisational culture. However, the division has not yet completed its recovery.
"While we have made substantial progress, we have not yet fully recovered," Pope wrote.
She also referred to the need to adjust production schedules to give factories and supply chain partners additional time to achieve operational stability.
"Adjusting our production schedules and reducing aircraft output puts us in an overstaffed position," she said.
The revised staffing levels, according to Pope, will reflect the division's updated business plan rather than its earlier production ambitions.
737 Max production delays add to Boeing's challenges
The workforce reduction comes as Boeing attempts to increase production of the 737 Max, one of its most important commercial aircraft programmes.
The company had aimed to produce 47 737 Max aircraft every month in 2026. However, the production ramp-up has taken longer than anticipated.
During an October earnings call, Boeing CEO Kelly Ortberg told investors that increasing production was progressing more slowly than expected.
The production challenges follow the company's safety and quality crisis, which intensified after a door-plug blowout on an Alaska Airlines-operated 737 Max 9 in January 2024.
Boeing has since been working to strengthen manufacturing quality, improve delivery performance and restore confidence among regulators, airlines and customers.
The latest staffing decision reflects the operational adjustments required as the company recalibrates its production plans.
Commercial division accounts for 44% of Boeing's revenue
Despite the production difficulties, Boeing's commercial aircraft business remains central to its financial performance.
The division, known as BCA, contributed 44% of Boeing's revenue in the previous quarter, but reported a loss of US$697 million during the period.
In comparison, the company's Defense & Space and Global Services divisions were profitable in the same quarter.
Boeing's shares also faced pressure following the company's production outlook. According to Business Insider, the stock fell 10.7% after the October update and was down approximately 25% in 2026 at the time of its report.
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The commercial aircraft division's financial performance and production targets remain important factors in the company's wider recovery.
Boeing outlines support for employees facing layoffs
Alongside the workforce reduction announcement, Boeing said it would provide assistance to employees affected by the decision.
In a statement following the announcement, the company said it was working with staff to minimise the impact through career transition support and employee assistance programmes.
The measures include:
Company-sponsored outplacement services to support employees seeking new employment.
Layoff benefits for affected workers.
Employee Assistance Program support to help employees navigate the transition.
Pope also acknowledged the impact of the reductions on employees, their families and local communities.
"I know how difficult these actions are and the impact they will have on all of us, our families, and our communities. We will never take that lightly," she wrote.
She added that the company would continue to emphasise safety, quality and respectful treatment throughout the process.
What Boeing's latest workforce reduction signals
Boeing's planned job cuts highlight the challenges of aligning workforce capacity with manufacturing output during a prolonged operational recovery.
The company is attempting to stabilise production while addressing quality concerns and meeting delivery commitments. Its ability to achieve a more consistent production schedule will remain central to its commercial aircraft business.
The first notifications are expected in December, when affected employees will begin receiving information about their employment status.
For Boeing, the immediate task will be to balance workforce requirements with manufacturing stability as it works towards its revised production plans. The pace of the 737 Max ramp-up and the division's financial performance will remain key indicators of progress.
