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Boeing to cut 5% of its commercial airplane workforce as it delays its 737 production ramp

The commercial unit will cut about 5% through attrition and involuntary layoffs, with notifications beginning in December, after Boeing pushed a 737 rate of 52 jets a month to the back half of 2027.

By Marcus Rodriguez · Nov 10, 2026, 2:25 PM EST

Why it matters: The slower 737 ramp is already expected to leave deliveries short of a 500-jet target this year, and Boeing now targets $10 billion in annual free cash flow in 2029.

For information only, not investment advice. Prices delayed.

Tickers: BA

Stephanie Pope, who runs Boeing's ($BA) commercial airplanes unit, told staff Monday that slowing production left the division overstaffed. "Adjusting our production schedules and reducing aircraft output puts us in an overstaffed position," she wrote. "Unfortunately, that means we need to align our staffing levels to our revised business plan, resulting in a reduction of approximately 5% through a combination of attrition and involuntary layoffs, with notifications beginning in December."¹ She tied the reset to third-quarter earnings, saying factories and suppliers need more time to reach stability.² Boeing shares were down 0.59% at $172.38 as of Nov 9, 4:00 PM ET.

It is the first workforce reduction since CEO Kelly Ortberg planned to cut about 17,000 jobs in 2024, or about 10% of the company then.³⁴ It is not clear how many commercial-airplane employees will be laid off, versus leaving through attrition, or how the cuts will affect unionized workers.⁴ SPEEA, representing about 17,000 Boeing employees in Washington and nearby states, meets leadership next week; IAM Local 751, with more than 30,000 workers in the region, shared a list of frequently asked questions related to layoffs with members Monday.⁴

On the October earnings call, Ortberg said it is taking longer than expected to show a stable 737 rate of 47 airplanes a month and that full stability will slip into next year. The financial plan, he said, will target 52 a month in the back half of 2027, after Everett's new North Line is certified and producing and wings and Wichita fuselages are stable at higher rates.⁵ Boeing's Oct. 27 release said the 737 was still progressing toward 47 a month, and that the 737-7 and 737-10 had received FAA certification.⁶ The first 737 MAX 10 from the North Line rolled out in October but cannot be delivered until that line is certified.⁴ CFO Jesus Malave Jr. said the delay at rate 47 is expected to leave 737 deliveries shy of a 500-jet target this year.⁵

The 787 remains at 8 a month, with a planned start of the move to 10 still expected this year.⁵⁶ Boeing said it anticipates positive cash flow in 2026 for the first time since 2023, then about $3 billion in free cash flow in 2027, $6 billion in 2028 and a $10 billion target in 2029.⁷

Boeing had approximately 182,000 employees as of December 31, 2025.⁸ Boeing Wichita officials told local staff that Wichita and Tulsa, Oklahoma, employees were not being considered for layoffs, voluntary separation or early retirement. Boeing bought the Wichita site from Spirit AeroSystems last December; it has about 13,000 employees.² "While we have made substantial progress, we have not yet fully recovered," Pope said.³ The company will offer outplacement services, layoff benefits and Employee Assistance Program support.²

Tags: layoffs · guidance