Boeing announced Monday that it will cut 5% of staff in its commercial division, which makes the 737 and other airplanes used by millions of travelers worldwide.
The layoffs stem from 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 been ramping up production of its most popular aircraft, the 737 Max, as it recovers from a quality and safety crisis sparked by the Alaska Airlines blowout in January 2024.
While it had hoped to produce 47 of the 737 Max a month this year, Boeing CEO Kelly Ortberg told investors on an earnings call in October that increasing production was taking longer than expected.
That sent the company’s share price down 10.7%. The stock is 25% lower so far in 2026.
Boeing will make the cuts through “a combination of attrition and involuntary layoffs,” Pope said in the memo. Affected staff will be told beginning in December.
The commercial airplanes division, known as BCA, is Boeing’s largest business, employing about 50,000 people, meaning the planned 5% reduction is equivalent to roughly 2,500 employees.
BCA accounted for 44% of the company’s revenue last quarter but made a $697 million loss. Boeing’s Defense & Space and Global Services divisions were profitable in that period.
In a statement released after the cuts were announced, Boeing said it is working with staff to “minimize the impact” of the layoffs by “supporting their career transition through company-sponsored outplacement services, layoff benefits, and employee assistance program support.”
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Read Pope’s full memo to staff below:
Team, Over the past two years, we have made significant investments in talent, training, and infrastructure across 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 meaningful improvements in our recovery including quality and delivery performance, 737-7 and 737-10 certification, and positive changes to our culture. While we have made substantial progress, we have not yet fully recovered. As shared in our third-quarter earnings, we need to reset the pace of our production rate ramps to provide our factories and supply chain partners additional time to achieve stability. Adjusting our production schedules and reducing aircraft output puts us in an overstaffed position. 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. 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 that lightly. We will do everything we can to minimise the impact by supporting career transitions through company-sponsored outplacement services, layoff benefits, and Employee Assistance Program support. Throughout this process, we will remain true to our Values & Behaviors, including our steadfast 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 one another. By continuing to care for one another, uphold our standards, and work together with purpose, we will complete our recovery and build a stronger future for BCA. Stephanie