If we don't increase production, we will lay off people first! Boeing (BA.US) cuts 5% of commercial aircraft jobs, and delays the target of producing 47 aircraft in July until 2027

The Zhitong Finance App learned that Stephanie Pope, head of the commercial aircraft division of Boeing (BA.US), told employees in an internal memorandum on Monday that due to the blockage of passenger aircraft production increases, the business sector plans to lay off 5% of its employees.

In the memorandum, Pope said, “As we disclosed in our third quarter earnings report, we need to readjust the pace of production capacity climbing to allow more time for factories and supply chain partners to stabilize production conditions. Adjusting production plans and reducing aircraft production has left us overstaffed.”

According to the memorandum, the current staff reduction will be promoted through a combination of natural attrition and forced layoffs, and the layoff notice will be issued as early as December. According to information, several US state regulations require companies to notify employees 60 days prior to layoffs.

Boeing CEO Kelly Otterberg confessed to analysts last month that the company was unable to meet production and delivery targets for the 737 model this year. The company's latest forecast is that it will not be possible to achieve a monthly production capacity of 47 units of the 737 aircraft until the beginning of 2027. Previously, the original goal was to reach this production capacity level in the summer of 2026.

At the same time, he mentioned that the company is not expected to achieve the $10 billion free cash flow target until 2029, a year later than market analysts' previous expectations. After years of crisis and negative turmoil, Boeing's reputation was damaged, debt was high, and faced more stringent regulatory scrutiny. In the eyes of investors, this cash flow target is a critical milestone in its financial recovery process.

The best-selling 737 narrowbody airliner is Boeing's core source of cash, and increasing the production capacity of this aircraft is critical to the company's recovery.

In addition, the increase in production of the Boeing 787 wide-body aircraft was also blocked. The company originally planned to increase monthly production from 8 to 10; however, according to reports last month, the production pace of the 767 and 777 models was also disrupted.

As of December 2025, the Seattle-based commercial aircraft division had 50,494 employees, according to data from the company's website.

A number of Boeing employees revealed that before the official announcement was made on Monday, many internal employees were already worried about the upcoming wave of layoffs.