Boeing to cut 5% of commercial airplane workforce as production increase is slower than expected
Boeing said Monday that it plans to cut 5% of its commercial airplane workforce as its production ramp-up is moving at a slower pace than the company expected.
Boeing Commercial Airplanes announced on Monday that it intends to reduce 5% of its workforce in its commercial airplane division. This decision comes as the division continues to grapple with difficulties in ramping up jetliner production output, according to the division's chief Stephanie Pope, who communicated the news to employees through an internal memo.
The company's third-quarter earnings revealed the need to adjust production schedules and scale back aircraft output to create stability for its factories and supply chain partners. Pope's memo, as reviewed by Reuters, indicated that the overstaffing situation would stem from the decision to reduce production. Boeing CEO Kelly Ortberg had previously informed analysts that the company would miss its 737 production and jet delivery targets for the year.
The company now anticipates a 737 production rate of 47 jets per month in early 2027, down from the earlier projected pace of 50 jets per month by summer 2026. Additionally, Boeing has faced challenges in increasing production of its widely-used 787 widebody jet from 8 aircraft per month to the desired 10 aircraft per month. As of December 2025, Boeing's commercial airplane division employed a workforce of 50,494 employees, as reported on the company's website. Boeing's shares experienced a slight decline during midday trading.
Written by urgent.news from Investing.com's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
