American aviation major Boeing plans to reduce its commercial airplane workforce by 5% amid the company’s ongoing struggles to increase jetliner production and stabilise its manufacturing operations.
In an internal memo to employees on Monday, division chief Stephanie Pope said the Boeing needed to slow down its production ramp-up plans to give its factories and supply chain partners more time to address operational challenges.
“The adjustment to production schedules and lower aircraft output had left the division with more employees than required,” she added.
The workforce reductions will involve both voluntary attrition and involuntary layoffs, with the first notifications expected to be issued no earlier than December.
Boeing will also have to comply with state-level requirements in several manufacturing locations that mandate 60 days’ advance notice before job cuts.
The announcement comes as Boeing continues to face difficulties meeting its aircraft production and delivery targets, adding pressure to its broader financial recovery efforts.
CEO Kelly Ortberg told analysts in October that Boeing would miss its production and delivery targets for the 737 narrowbody aircraft this year.
The company now expects to reach a production rate of 47 aircraft per month in early 2027, pushing back its earlier target of achieving that level by summer 2026.
Given the fact that Boeing has pitched both the 737 and its new variant, 737 MAX, as its answer to rival Airbus in the narrowbody segment, making higher production volumes becomes absolutely essential for the aviation major to improve its financial position.
Ortberg also said Boeing did not expect to achieve USD 10 billion in free cash flow until 2029, a year later than analysts had anticipated.
The target is considered an important milestone in the manufacturer’s recovery following years of operational crises, safety controversies, mounting debt, and increased regulatory scrutiny.
Apart from facing headwinds at scaling up 737 production, Boeing has also struggled to increase output of its popular 787 Dreamliner from eight to 10 aircraft per month.
Meanwhile, its 787 and 777 programs have faced additional disruptions, highlighting the wider challenges confronting the company’s manufacturing operations.
The Seattle-based Commercial Airplanes division employed 50,494 people as of December 2025, according to Boeing’s website.
The latest workforce announcement had been anticipated by employees, several of whom had reportedly expressed concerns about potential layoffs ahead of Monday’s communication.