US aircraft manufacturer Boeing is cutting its workforce in the commercial aeroplanes division by about 5%, or 2,500 employees, as it struggles to ramp up production at the pace originally planned and stabilise manufacturing operations and supply chain. Boeing Commercial Aeroplanes CEO Stephanie Pope notified employees via an internal memo on Monday (9 November) of the proposed workforce reduction.
The job cuts will be a combination of involuntary layoffs and attrition reductions; affected workers will begin receiving notifications beginning in December. Workers in the US aviation and aerospace manufacturing industry, particularly those in regions where Boeing has major production facilities, were worried by the announcement.
As of December 2025, Boeing’s commercial aircraft division had roughly 50,494 employees. A 5% cut in its workforce therefore would be about 2,500 positions (Boeing hasn’t said how many employees will lose their jobs directly through layoffs; some of the workforce reduction will come from attrition).
Attrition generally refers to reducing employee numbers by natural departures (employees leaving on their own), retirements and vacant positions that aren’t filled. Pope told employees that “we needed to adjust staffing levels accordingly with our updated business plans.” She also said it was “difficult” for the company to make the decision and impact employees, families and communities.
The main reason for this latest workforce reduction is Boeing’s slower-than-expected expansion of aircraft production. The company had planned to ramp up manufacturing output on several aircraft programmes, but operational issues at its factories and among supply chain partners have delayed those targets.
Management at Boeing says that schedules need to be adjusted so manufacturing facilities and suppliers have more time to stabilise. Aircraft output has been reduced or increased more slowly than originally planned, so the commercial aeroplanes division has more employees than it needs under the revised schedule, and the workforce reduction is part of a larger effort to get employee numbers closer to what manufacturing actually needs.
One of the biggest problems facing Boeing is its inability to ramp up production of its popular 737 MAX plane. The company had said it would reach a monthly production rate of 47 planes by summer 2026, but operational problems have pushed that target back to early 2027.
Boeing has also struggled to increase the number of 787 Dreamliner planes it produces each month from eight to 10. Manufacturing capacity, wing production and supply chain stability issues have all hampered the company’s ability to hit production and delivery targets. Last month, Boeing CEO Kelly Ortberg told investors the company would miss its 737 production and aircraft delivery targets for 2026.
The slowdown in production has also hit Boeing’s wider financial recovery plans. It is trying to improve manufacturing efficiency, quality control and customer and investor confidence (after several years of operational and financial problems) so that aircraft production increases are an important part of improving revenue and cash flow, but Boeing says “if you push up production without stabilising factories and suppliers there will be more operational problems”, so it is not rushing to increase production levels.
Manufacturing stability is therefore being given priority over rapid expansion; its latest workforce cut reflects this as management tries to match staffing requirements with revised production schedules.
This comes on the heels of another major cut in workforce in 2024, when Boeing announced plans to eliminate about 17,000 jobs (about 10% of its workforce) during that year, cuts made amid financial pressure and the machinists’ strike as well as scrutiny following a serious safety incident involving an Alaska Airlines Boeing 737 MAX 9. This latest proposed reduction is another big workforce adjustment being made by the company as it recovers and improves operational performance.
Meanwhile, Boeing will help employees impacted by the latest decision. Company-sponsored outplacement services, layoff benefits and its Employee Assistance Programme are expected to be offered as career transition assistance (reports). The measures are meant to help affected employees transition through the process and find new employment opportunities, but there is uncertainty over how many employees will face involuntary layoffs and where or which departments that will occur. More details will likely come as the process continues.
The 5% workforce reduction shows just how difficult it is for one of the world’s largest aircraft makers to stabilise production and build business operations back up. Demand for commercial aircraft remains strong, but Boeing’s ability to manufacture planes at a pace that meets demand is still a major problem. Layoff notifications are expected to start in December 2026, so employees and the aviation industry as a whole will be watching closely to see how the company implements its new workforce and production strategy.
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