Boeing plans to reduce the workforce of its commercial aircraft division by approximately 5%, potentially affecting around 2,500 positions, after slower-than-expected production growth left the business with more employees than it needs under its revised manufacturing plans.
The decision was communicated to employees on November 9 by Stephanie Pope, president and CEO of Boeing Commercial Airplanes. The Seattle Times first reported the cuts, which were subsequently confirmed in coverage by Reuters.
The reductions will involve layoffs and positions left vacant as employees depart. Notifications are expected to begin in December, although Boeing has not disclosed the number of compulsory redundancies or which factories and departments will be most affected.
Boeing Commercial Airplanes employed approximately 50,500 people at the end of 2025. A 5% reduction based on that figure would represent about 2,500 positions, but the company has not confirmed an exact number.
Production targets pushed into 2027
The workforce reduction follows Boeing's decision in October to slow planned production increases, giving its factories and suppliers more time to stabilize their operations.
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The manufacturer had expected to increase 737 MAX production to 47 aircraft per month before the end of 2026. That target has now been pushed into early 2027, with a further increase to 52 aircraft per month planned for the second half of next year.
The company has also encountered difficulties expanding 787 Dreamliner production from eight to ten aircraft per month. Manufacturing disruptions and supplier constraints continue to affect other commercial aircraft programs.
The slower production growth is particularly significant because Boeing continues to hold a substantial order backlog. The workforce reductions are therefore not primarily a response to weaker demand for aircraft, but to the company's inability to increase output at the pace previously anticipated.
Boeing shares fall after job cuts announcement
Boeing shares experienced a volatile session on the New York Stock Exchange on November 9. The stock briefly fell to $168.89, almost 3% below the previous closing price, following reports of the workforce reduction.
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The shares subsequently recovered much of their losses and ended the session at $172.38, down 0.59% from the previous close of $173.40. The stock traded as high as $177.39 during the day.
The market reaction followed a much sharper decline on October 27, when Boeing shares lost approximately 11% after the company disclosed its revised production outlook and financial expectations.
The manufacturer has also postponed its target of generating approximately $10 billion in annual free cash flow from 2028 to 2029, increasing pressure on management to improve manufacturing performance and aircraft deliveries.
The latest reductions are separate from the company-wide restructuring announced in 2024, when Boeing said it would eliminate approximately 10% of its global workforce, equivalent to around 17,000 positions.
