Boeing to cut 5% of commercial jet workforce amid production struggles

Commercial Aeroplanes, Boeing's commercial jet division, announced plans to reduce its workforce by 5% due to challenges in boosting jetliner production. The decision was revealed in an internal memo by Stephanie Pope, the division’s chief, which was reviewed by Reuters. Pope stated that the company must adjust its production schedules and reduce aircraft output to provide factories and supply chain partners additional time to stabilize.

The reductions, expected through attrition and involuntary layoffs, will begin in December at the earliest, with workers given a minimum of 60 days' notice in many states.

Boeing CEO Kelly Ortberg informed analysts last month that the company would miss its 737 jet production and delivery targets for the year. The company now anticipates a 737 production rate of 47 jets per month in early 2027, a delay from the previously projected summer 2026 target. Ortberg also mentioned that Boeing does not expect to achieve $10 billion in free cash flow until 2029, a year later than investor expectations.

This target is crucial for Boeing's financial recovery following years of crises and controversies that left the company heavily in debt and under stricter regulatory scrutiny. The 737 narrowbody jet, Boeing's most significant cash generator, necessitates higher production for the company's recovery. Additionally, the division has faced difficulties in increasing 787 widebody jet production from 8 to 10 per month and has disrupted the 767 and 777 programs.

As of December 2025, Boeing's Seattle-based commercial aeroplane division employed 50,494 individuals.