Boeing said Monday it would cut 5 percent of the workforce at its commercial division, which makes the 737 and other planes used by millions of travelers around the world.
The layoffs are a result of Boeing’s inability to increase production as quickly as hoped, meaning it is “overstaffed,” the division’s CEO Stephanie Pope said in an internal memo obtained by Business Insider.
Boeing has ramped up production of its most popular plane, the 737 Max, as it recovers from a quality and safety crisis triggered by the Alaska Airlines blowout in January 2024.
While it hoped to produce 47 737 Max planes per month this year, Boeing CEO Kelly Ortberg told investors on an October conference call that ramping up production was taking longer than expected.
This caused the company’s stock price to fall by 10.7%. The stock is 25% lower in 2026 so far.
Boeing will make these reductions through “a combination of attrition and involuntary layoffs,” Pope said in the memo. Affected staff will be informed from December.
The commercial aircraft division, known as BCA, is Boeing’s largest business, employing about 50,000 people, meaning the planned 5% reduction equates to about 2,500 employees.
BCA accounted for 44% of the company’s revenue last quarter, but posted a loss of $697 million. Boeing’s Defense & Space and Global Services divisions were profitable during this period.
In a statement released after the cuts were announced, Boeing said it was working with staff to “minimize the impact” of the layoffs by “supporting their career transition through company-sponsored outplacement services, severance packages and an employee assistance program.”
Read the pope’s full note to staff below:
Team, Over the past two years, we have made significant investments in talent, training and infrastructure within BCA to stabilize our business and strengthen our foundation for the future. In addition to your hard work and dedication, these investments have contributed to significant improvements in our recovery, including in quality and delivery, 737-7 and 737-10 certification, and positive changes in our culture. Although we have made substantial progress, we have not yet fully recovered. As noted in our third quarter results, we need to accelerate the pace of our production rates to give our factories and supply chain partners more time to achieve stability. Adjusting our production schedules and reducing aircraft production puts us in a situation of overstaffing. Unfortunately, this means we must align our staffing levels with our revised business plan, which will result in a reduction of approximately 5% through a combination of attrition and involuntary layoffs, with notifications beginning in December. I know how difficult these actions are and the impact they will have on all of us, our families and our communities. We will never take this lightly. We will do everything possible to minimize the impact by supporting career transitions through company-sponsored outplacement services, severance packages and employee assistance program support. Throughout this process, we will remain true to our values and behaviors, including our unwavering commitment to safety and quality and our responsibility to ensure that everyone is treated with dignity and respect. Thank you for everything you do to support each other and our customers. The progress we have made demonstrates what is possible when we remain focused, resilient and committed to each other. By continuing to care for each other, uphold our standards and work together with purpose, we will complete our recovery and build a stronger future for BCA. Stephanie
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