Boeing to cut 5% of commercial aircraft workforce amid production delays
By the AFREEQUE newsroom, based on MyJoyOnline
Boeing will cut 5% of the workforce in its commercial aircraft division, facing difficulties in increasing jet production, according to an internal memo from Stephanie Pope. The 737 is not expected to reach 47 aircraft per month until early 2027, and the target of $10 billion in free cash flow has been pushed back to 2029, according to Reuters.
Boeing will cut 5% of the workforce in its commercial aircraft division, due to difficulties in increasing the production of its airliners. Stephanie Pope, head of the division, announced this in an internal memo sent to employees on Monday, as cited by Reuters.
In the memo, Stephanie Pope explains that the group must slow the increase in its production rates to give its factories and suppliers time to reach stability. The job cuts will be made through unfilled departures and forced redundancies, with notices issued in December at the earliest. In several states, Boeing must observe a 60-day notice period. Chief Executive Kelly Ortberg also acknowledged last month that the group would miss its 737 production and delivery targets this year. He now aims for a rate of 47 aircraft per month in early 2027, compared with a previous target set for summer 2026.
Boeing is also struggling to raise production of the 787 from 8 to 10 aircraft per month, and the 767 and 777 programmes have been disrupted. The group also does not expect to reach $10 billion in free cash flow before 2029, one year later than analysts had forecast. As of 31 December 2025, the division had 50,494 employees, in Seattle and its associated sites.
