Boeing to Cut About 2,500 Commercial Airplanes Jobs as Production Ramp-Up Slows

Boeing has announced it will reduce its Boeing Commercial Airplanes (BCA) workforce by around 5%, affecting about 2,500 workers, through involuntary layoffs and natural attrition. Layoff notifications will start in December, and no layoffs are expected in November. The decision comes as Boeing confirmed it plans to slow factory production rate increases as a result of factory and supply chain challenges.

Boeing Commercial Airplanes CEO Stephanie Pope shared a memo to employees, as reported by CNBC: "Adjusting our production schedules and reducing aircraft output puts us in an overstaffed position. Unfortunately, that means we need to align our staffing levels to our revised business plans." In a statement obtained by Simple Flying, a Boeing spokesperson confirmed that "as we adjust our production plans, we are aligning staffing levels to those updated plans and the overall needs of the business. Over the coming months, we will reduce Commercial Airplanes staffing by about five percent through a combination of attrition and layoffs." Boeing Commercial Airplanes employs a total of 50,494 workers, and Boeing said its team is working to minimize the impact on teammates through company-sponsored outplacement services, layoff benefits and employee assistance program support.

The decision stems from challenges in assembly lines and component delivery flows, requiring Boeing to recalibrate to its current supply chain abilities instead of aggressive output targets. The 737 MAX target timeline of 47 planes per month has been pushed out until mid to late 2027, with the lift from 47 to 52 jets per month pushed out until the second half of 2027; output increases on the 787 Dreamliner have also been reduced. Boeing CEO Kelly Ortberg told investors last month that MAX production will not increase until the second half of 2027, with 737 and 787 output remaining at 47 and eight jets per month and disruption hampering the 767 and 777 programs. Despite the changes, Boeing continues to hold a backlog of more than 6,300 airplanes, valued in excess of $610 billion.