Boeing is to reduce its commercial aircraft workforce by 5% as the US planemaker slows planned production increases while it works to stabilise its factories and supply chain.
Stephanie Pope, President and Chief Executive Officer of Boeing Commercial Airplanes, announced the cuts in an internal memo to staff on Monday, November 9. The reductions will come through a combination of natural staff departures and compulsory redundancies.
The company’s website lists 50,494 employees in the Seattle-based division as of December 2025. Layoff notifications are not expected before December at the earliest.
Many US states require Boeing to give employees 60 days’ notice before redundancies take place. However, managers at the company’s Wichita facility told workers in Wichita and Tulsa that those locations are exempt from the requirement.
“As shared in our third-quarter earnings, we need to reset the pace of our production rate ramps to provide our factories and supply chain partners additional time to achieve stability,” Pope wrote in the memo, seen by Reuters.
“Adjusting our production schedules and reducing aircraft output puts us in an overstaffed position.”
Pope said Boeing would seek to reduce the effect on employees by offering support with finding new work.
“We will do everything we can to minimize the impact by supporting career transitions through company-sponsored outplacement services, layoff benefits, and Employee Assistance Program support,” she added in the email.
Production targets delayed
Boeing President and Chief Executive Officer Kelly Ortberg told analysts last month that the company would not meet its 2026 production and delivery targets for its flagship 737 narrowbody aircraft.
The company now expects to reach production of 47 737 jets a month in early 2027, rather than in summer 2026.
Boeing is also facing delays in increasing output of its 787 widebody aircraft from eight to 10 jets per month. Its 767 and 777 programmes have also been affected by disruptions.
Ortberg has postponed Boeing’s target of generating US$10 billion in annual free cash flow by one year, to 2029. The company is attempting to recover while dealing with debt and tighter regulatory scrutiny.
Boeing shares fell by less than 1% in trading on Monday afternoon.
In Ghana, the government says discussions with Boeing on establishing a new national carrier are nearing completion. Boeing has pledged to continue providing technical support for the project.
