Boeing is planning to cut approximately 2,500 jobs within its commercial aircraft division as the manufacturer continues to encounter difficulties increasing production rates across its aircraft programmes.
The proposed reduction was communicated to employees on 9 November 2026 by Stephanie Pope, President and Chief Executive Officer of Boeing Commercial Airplanes. The cuts are expected to affect around 5% of the division’s workforce, which employed approximately 50,500 people at the end of 2025.
The workforce reduction will involve a combination of voluntary attrition and involuntary layoffs. According to Pope’s communication to employees, affected workers could begin receiving notifications as early as December.
737 Production Targets Pushed Back
The decision comes as Boeing continues working towards stabilising its commercial aircraft manufacturing operations, with production increases taking longer than initially anticipated.
The manufacturer had been working to increase production of its best-selling 737 aircraft from 42 to 47 aircraft per month. The increase began during the second quarter of 2026, with Boeing initially expecting to reach the higher production rate by the summer, however, the target has since been pushed back to early 2027.
Boeing Chief Executive Officer Kelly Ortberg acknowledged the delays during the company’s October earnings call, confirming that the manufacturer would miss its 2026 737 delivery target.
The slower production ramp-up has been attributed to the need for greater stability across Boeing’s manufacturing facilities and supply chain. The company is seeking to give both its factories and suppliers additional time to address production constraints before attempting further increases.
The implications extend beyond the 737 programme.
787 Dreamliner Programme Also Behind Schedule
Boeing’s widebody production operations are experiencing similar difficulties, particularly involving the 787 Dreamliner.
The manufacturer had been working towards increasing production of the aircraft to 10 units per month. However, output remained at eight aircraft per month during the third quarter of 2026.
Between July and September, Boeing delivered 22 Dreamliners alongside 124 737 aircraft.
The slower production rates come despite continued demand for Boeing’s commercial aircraft, with airlines and leasing companies maintaining substantial orders for both narrowbody and widebody aircraft.
Substantial Order Backlog Despite Production Challenges
Boeing’s commercial aircraft division continues to receive new orders at a considerable pace, even as its manufacturing operations struggle to keep up with planned delivery schedules.
During the third quarter of 2026, the division recorded 300 net aircraft orders while delivering 161 aircraft.
By the end of September, Boeing had accumulated an order backlog exceeding 6,300 aircraft, valued at approximately US$612 billion. The figure represents a record backlog for the manufacturer. A substantial order book has not yet translated into the financial performance Boeing would like to see from its commercial aircraft operations.
The division reported an operating loss of US$697 million during the third quarter, despite generating revenue of US$10.7 billion.
The workforce reduction therefore comes at a time when Boeing is attempting to bring its manufacturing capacity, delivery commitments and financial performance into closer alignment.
A Longer Road to Recovery
Although the manufacturer continues to secure significant aircraft orders, increasing output remains a considerable obstacle. Its revised 737 production timetable and slower-than planned 787 output demonstrate that the recovery is not progressing at the pace initially anticipated.
The proposed reduction of approximately 2,500 positions will further reshape Boeing Commercial Airplanes as it works towards stabilising its manufacturing operations and meeting future delivery commitments.
