US aircraft manufacturer Boeing plans to reduce its Commercial Airplanes workforce by approximately 5% as production challenges force the company to revise manufacturing schedules and delay key recovery targets, Reuters reported.
According to an internal memorandum issued by Commercial Airplanes Chief Stephanie Pope on Monday, the reductions will involve employee attrition and involuntary layoffs.
Affected workers could receive notices as early as December, with several US states requiring employers to provide 60 days' advance notice.
Boeing's Commercial Airplanes division employed 50,494 people in December 2025, suggesting that approximately 2,500 positions could be affected.
Pope said the company needed to adjust production schedules to allow factories and supply chain partners additional time to stabilise operations.
Lower aircraft output has created excess staffing relative to revised production requirements, she explained.
The decision follows continuing difficulties in increasing output across Boeing's major aircraft programmes.
Chief Executive Officer Kelly Ortberg acknowledged last month that the company would miss its 2026 production and delivery targets for the 737 aircraft.
Boeing now expects to manufacture 47 aircraft monthly in early 2027, compared with its previous target of summer 2026.
The manufacturer has also encountered challenges increasing monthly production of its 787 widebody jets from eight to 10 aircraft.
Its 767 and 777 programmes have experienced disruptions.
Production setbacks have also affected Boeing's financial recovery expectations.
The company now anticipates achieving $10 billion in free cash flow in 2029, one year later than analysts had expected.
During Boeing's third-quarter earnings call, Ortberg emphasised the importance of maintaining discipline while increasing aircraft output.
The proposed reductions would represent the company's first major workforce cuts since 2024.
That year, Boeing eliminated approximately 17,000 positions amid financial difficulties following a machinists' strike and the fallout from an Alaska Airlines 737 Max 9 door plug incident.
The latest restructuring reflects Boeing's continuing efforts to align staffing levels with production capacity while addressing manufacturing and supply chain constraints.
