Boeing to cut commercial airplane workforce by about 5% amid production setbacks

Boeing confirmed to its employees on Monday that the company would cut its commercial airplane workforce by roughly 5% and reduce its commercial airplane production.

Stephanie Pope, the head of Boeing Commercial Airplanes, wrote to employees in an email detailing that the workforce reduction would include both layoffs and attrition, according to an email obtained by The Seattle Times.

As of December 2025, Boeing had approximately 182,000 employees, though it remains unclear how many positions would be impacted in the 5% cut.

Pope detailed how Boeing intended to “reset the pace of [its] production rate ramps” in an effort to provide “time to achieve stability” with its factories and suppliers.

“Adjusting our production schedules and reducing aircraft output puts us in an overstaffed position,” Pope stated, according to The Seattle Times. “Unfortunately, that means we need to align our staffing levels to our revised business plans.”

In Boeing’s latest quarterly earnings call in October, the company explained to analysts how it would not reach its target for 737 MAX deliveries in 2026, highlighting issues with its Renton wing shop. Additionally, Boeing said it wouldn’t increase its monthly MAX production until mid-2027 and would also slow down its production increase for the 787 Dreamliner, according to The Seattle Times.

Boeing stock tumbles as investors react to third-quarter losses

Boeing shares had their worst day in more than 18 months on Oct. 27 after the company reported a bigger-than-expected third-quarter loss and said it would miss its 737 production and delivery targets this year.

The stock fell 10.7%, closing at $168.07. That was the stock’s lowest level since April 2025, according to Reuters.

Boeing lost $116 million, or 26 cents a share, in the three months ending Sept. 30, according to the company. Excluding certain costs, Boeing reported what it calls a core loss of 34 cents a share. Analysts surveyed by LSEG had expected a loss of 21 cents, according to CNBC. Revenue rose 4% from a year earlier to $24.19 billion.

737 production is slower than promised

The bigger worry for investors was the timeline. CEO Kelly Ortberg said Boeing will miss its 737 production and delivery targets for 2026. Boeing said the 737 program is still working toward a steady rate of 47 planes a month, and Reuters reported that the company now expects to get there in early 2027.

On the earnings call, Ortberg said Boeing is aiming for 52 planes a month in the second half of 2027, according to CNBC. He has blamed the slowdown on the pace of wing production.

“I know everybody wants us to go faster, but we’re going to do it right,” Ortberg told CNBC.

Production matters for Boeing’s recovery because airlines pay most of a plane’s price when it’s delivered, according to CNBC. Boeing delivered 161 commercial airplanes in the quarter, one more than a year earlier, according to the company.

Supplier dispute stalls Boeing production, costing company $6.5M a day

In late October, a dispute between Boeing and a Florida-based supplier impacted Boeing’s 777 freighter production, costing the company about $6.5 million per day. The disruption has stalled work at the company’s Everett location for nearly two months, according to court filings obtained by Reuters.

The disagreement is reportedly over a critical wing component known as the trailing-edge rib kit. Output of Boeing’s 767 aircraft and KC-46 military refueling tankers are also affected.

Boeing filed a complaint against Vaero, allegedly naming the company as the sole supplier of a critical component in the 777 production process.

In September, the companies reached a settlement. However, production of the 777 freighters has not resumed.

Boeing removed two 777 freighters that were partially assembled from the final assembly line due to the missing parts, according to one Boeing worker who spoke to Reuters. The company’s 777X line, which uses composite wings, is not being affected.

Contributing: Regan Gallo-Fenz, MyNorthwest

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