Boeing announced Monday that it will cut approximately 5% of its commercial aircraft workforce due to slower-than-expected production growth, the company said in a statement to employees.
Stephanie Pope, head of Boeing's commercial aircraft division, disclosed the workforce reduction in a memo to staff, citing the need to align staffing levels with revised production schedules. The company will eliminate positions through a combination of layoffs and natural attrition as employees retire or resign.
"Adjusting our production schedules and reducing aircraft output puts us in an overstaffed position," Pope said in the memo. "Unfortunately, this means we need to align our staffing levels with our revised business plan, which will result in a workforce reduction of approximately 5% through a mix of non-replacement of departing employees and involuntary layoffs."
Pope indicated that employee notifications would begin in December. The commercial aircraft division currently employs approximately 51,000 workers, meaning the 5% reduction would affect roughly 2,550 positions. Boeing's total workforce across all divisions numbers around 182,000 employees.
In late October, Boeing Chief Executive Kelly Ortberg told analysts the company would not meet its 2026 production and delivery targets. The company previously aimed to produce 52 Boeing 737 Max aircraft monthly by mid-2026 but has revised that timeline. According to recent guidance, Boeing now expects to reach a production rate of 47 aircraft per month by early 2027.
Boeing is also managing production challenges with its 787 Dreamliner wide-body aircraft, working to increase output from eight to ten aircraft monthly.
The 737 Max has been central to Boeing's recovery efforts following two fatal crashes in 2018 and 2019 that killed 346 people combined. Those accidents were linked to problems with the MCAS flight control software. The aircraft was grounded for an extended period following the crashes and has since returned to service after software modifications and regulatory approvals.
The workforce reduction announcement comes as Boeing continues to navigate production complexities and supply chain constraints affecting the aerospace industry. The company's decision to slow production growth reflects broader challenges in ramping up manufacturing while maintaining quality and stability across its operations and those of its suppliers.