Boeing Job Cuts: 2,500 Employees At Risk As 737 Production Target Moves To 2027

Boeing has concluded that its revised production plans will leave the division with more employees than it currently needs, according to an internal memo from Commercial Airplanes Chief Stephanie Pope

The company now expects to generate $10 billion in free cash flow in 2029, a year later than analysts had expected, according to the report.

Source : Boeing

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Key points generated by AI, verified by newsroom

• Boeing cuts 2,500 jobs aligning with revised production schedules.
• Financial recovery, 737 production targets now delayed further.
• Delays ensure stable operations, supply chains, avoiding rapid acceleration.

Boeing's recovery plans are facing another setback, with the US aircraft manufacturer preparing to reduce staffing at its commercial aircraft division after pushing back key production targets. The company plans to cut around 5 per cent of the division's workforce, potentially affecting approximately 2,500 employees.

The workforce reduction follows a review of manufacturing schedules for several aircraft programmes. Boeing has concluded that its revised production plans will leave the division with more employees than it currently needs, according to an internal memo from Commercial Airplanes Chief Stephanie Pope, Reuters reported.

The cuts will be made through a combination of attrition and involuntary layoffs. Employees could receive notices as early as December, although Boeing must provide 60 days' notice in several US states.

Boeing's $10 Billion Cash Flow Target Now Pushed To 2029

The workforce decision comes as Boeing's financial recovery timeline also moves further out. The company now expects to generate $10 billion in free cash flow in 2029, a year later than analysts had expected, according to the report.

Production delays across its aircraft portfolio have added to the challenge. While the 737 remains Boeing's biggest cash-generating aircraft programme, the manufacturer has struggled to increase output at the pace previously planned.

Boeing is now targeting a monthly production rate of 47 aircraft in early 2027. Its earlier schedule had envisaged reaching this level by summer 2026.

Chief Executive Officer Kelly Ortberg had already acknowledged last month that the company would fall short of its 2026 production and delivery targets for the 737 jetliner.

Why Boeing Is Reworking Its Production Schedule

The revised timelines reflect the additional time Boeing believes its manufacturing facilities and supply chain partners need to stabilise operations.

In her memo to employees, Pope said the company had to adjust the pace of production increases. The changes to aircraft output had also left the commercial aircraft division overstaffed, she explained, according to Reuters.

Ortberg has also indicated that Boeing will not accelerate production simply to meet external expectations. During the company's third-quarter earnings call, he said the manufacturer would maintain discipline while increasing output, Bloomberg reported.

787 Output Stuck At Eight Aircraft A Month

Boeing's production challenges extend beyond the 737 programme. The company has also struggled to increase monthly production of its 787 widebody aircraft from eight to 10 jets.

Its 767 and 777 programmes have faced disruptions too.

These delays have complicated the manufacturer's efforts to improve deliveries and strengthen its financial position. The revised production schedule is intended to give its factories and suppliers more time to achieve stability.

Around 5% Of Commercial Airplanes Workforce Could Be Affected

Boeing Commercial Airplanes, headquartered in Seattle, had 50,494 employees as of December 2025, according to the company's website. A 5 per cent reduction would therefore put around 2,500 positions at risk.

The company plans to use both employee attrition and compulsory layoffs to reduce headcount. Several employees had expressed concerns about possible job cuts ahead of Monday's announcement.

The proposed reduction would be Boeing's first major workforce cut since 2024, when it announced plans to eliminate 17,000 jobs.

That earlier round of cuts came amid financial difficulties following a machinists' strike and the fallout from an incident involving an Alaska Airlines 737 Max 9, in which a door plug blew out during a flight.

Boeing is now attempting to align staffing levels with its revised manufacturing plans as it works towards its delayed production and financial targets.