Boeing Cuts 2,500 Commercial Airplane Jobs Amid Production Slowdowns
Boeing announced a 5% workforce reduction in its commercial airplane division, affecting about 2,500 employees, after delays in raising 737 aircraft production.
The Boeing Company announced plans to cut roughly 5% of the workforce in its commercial airplane division, equivalent to about 2,500 employees. The reduction will occur through natural attrition and involuntary layoffs, with formal notifications set to begin in December. Commercial Airplanes CEO Stephanie Pope stated in a staff memo that the division is overstaffed because production ramp-ups have taken longer than anticipated.
The staffing adjustments come as the company resets its output expectations. While Boeing previously targeted producing 47 of its 737 Max aircraft per month this year, Chief Executive Officer Kelly Ortberg told investors in October that expanding production was taking longer than expected. Ortberg noted the company does not anticipate a significant acceleration in 737 Max production until the second half of 2027, with the company aiming to stabilize output at 47 jets monthly that year.
Boeing's commercial airplane unit has faced ongoing operational and financial pressure, generating a $697 million loss last quarter while representing 44% of overall revenue. Total aircraft cancellations during the first nine months ended Sept. 30, 2026, reached $3.164 billion, primarily tied to the 737 and 787 programs. Meanwhile, the first 777-9 delivery remains delayed until 2027 due to certification, testing, and engine durability hurdles.
Despite these manufacturing strains, Boeing's total order backlog reached a record $745 billion in the third quarter, supported by 300 net aircraft orders from carriers such as Turkish Airlines, Ethiopian Airlines, and Lufthansa. Strong performance in the Defense, Space & Security segment also provided support, with quarterly revenue rising 15% to $7.9 billion and operating earnings surging 332% to $492 million, aided by a $252 million gain from selling HRL Laboratories and a selection by the U.S. Navy for the F/A-XX fighter.
Market performance has been mixed alongside the announcements. Shares of Boeing have declined 25.6% over the past three months, trailing the wider industry's 15.1% drop, and closed recently at US$173.40. According to Barchart, the consensus rating from Wall Street analysts stands at Strong Buy, with an average price target of about $237.