Boeing Commercial Unit to Cut 5% of Workforce Amid Production Delays
Boeing's commercial division plans to cut 5% of its workforce amid production delays, pushing its recovery timeline back as output targets for the 737 jet are deferred.
Boeing's commercial airplanes division plans to cut 5% of its workforce amid ongoing production hurdles, according to an internal memo sent by division head Stephanie Pope on Monday. Pope stated that adjusting production schedules and reducing aircraft output have left the division with excess staffing levels.
The reductions will be carried out through natural attrition and layoffs, with notifications expected to be sent to employees no earlier than December, according to the memo. In many US states, Boeing is required to provide workers with a 60-day advance notice prior to implementing layoffs.
Boeing CEO Kelly Ortberg told analysts last month that the company will miss its production and delivery targets for the 737 passenger jet this year. The company now projects reaching a production rate of 737 aircraft per month by early 2027, delaying its previous forecast of summer 2026.
Ortberg also noted that Boeing does not expect to achieve $10 billion in free cash flow until 2029—one year later than analysts had previously anticipated. This milestone is considered by investors to be critical for the company's financial recovery following years of crises, heavy debt, and heightened regulatory scrutiny.
