Boeing to cut 5% of commercial airplane workforce as 737 output lags
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The gist
Boeing said it will cut 5% of its commercial airplane workforce, with layoff notices starting in December.
The cuts follow slower-than-planned 737 Max production and a supplier dispute that stalled output.
Background
Boeing is the aircraft manufacturer whose commercial airplane division employed 50,494 people as of December 2025, part of roughly 182,000 employees companywide. The division's head, Stephanie Pope, told employees the company would slow its planned production increases to give factories and suppliers time to stabilize. Boeing has struggled to raise output of its bestselling 737 Max, and CEO Kelly Ortberg, who took over in 2024, had already said the company would not significantly increase Max production until the second half of next year. The company carries a backlog of over 6,000 planes worth around $600 billion.
How it unfolded
- 2024Kelly Ortberg took over as CEO and eliminated 17,000 positions that year, according to Bloomberg; this is the first workforce reduction since then.
- late October 2026A dispute with a Florida-based supplier over a wing component known as the trailing-edge rib kit stalled work at Boeing's Everett location for nearly two months, costing about $6.5 million per day, according to court filings obtained by Reuters; 777 freighter, 767 and KC-46 tanker output was affected.
- Oct 2026On the third-quarter earnings call, CEO Ortberg said wing output was improving but Boeing needed a high-confidence plan to step up to rate 52; CFO Jay Malave said Boeing would miss its target of delivering 500 737s this year.
- Nov 9, 2026Boeing said it plans to cut 5% of its commercial airplane workforce through attrition and layoffs, with notifications beginning in December, and to reset the pace of production rate ramps.
- Nov 9, 2026Boeing stock was down 0.7% at 1:16 p.m. ET and down 21% year to date; the company now expects to reach a steady 47 737 Max jets a month in early 2027, later than the summer 2026 target executives had given in May.
Key terms
- 737 Max
- A series of narrow-body airliners built by Boeing as the fourth generation of the 737 family.
Source: Wikipedia
Who’s saying what
- Official
- Stephanie Pope said adjusting production schedules and reducing aircraft output left the division overstaffed, requiring a roughly 5% reduction through attrition and involuntary layoffs.
- Official
- Pope said Boeing needs to reset the pace of its production rate ramps to give factories and supply chain partners additional time to achieve stability.
- Caution
- CEO Kelly Ortberg said wing output is improving but the company must demonstrate sustained performance and have a high-confidence plan before stepping up to rate 52.
Still unverified
It remains unclear how many positions would be impacted by the 5% cut; the supplier dispute is reported, per court filings obtained by Reuters, to concern the trailing-edge rib kit.