Boeing to Cut 2,500 Jobs as 737 MAX Output Slows

Boeing will cut about 5 percent of the workforce in its Commercial Airplanes division, putting around 2,500 jobs at risk, as slower 737 MAX production leaves the unit overstaffed.

The US planemaker announced the move in an internal memo to staff on Monday, November 9, from Commercial Airplanes chief Stephanie Pope. The cuts will be made through a mix of attrition and involuntary layoffs, with formal notices expected to begin in December.

Production targets pushed back

Boeing has reset the pace of its production ramp-up to give factories and suppliers more time to stabilise output. The company now expects to reach a production rate of 47 737 jets a month in early 2027, against its earlier target of summer 2026. A further step to 52 jets a month is now expected in the second half of 2027.

“Adjusting our production schedules and reducing aircraft output puts us in an overstaffed position,” Pope told employees in the memo, according to Reuters. “We need to reset the pace of our production rate ramps to provide our factories and supply chain partners additional time to achieve stability.”

Chief Executive Kelly Ortberg told analysts last month that the company would miss its 737 production and delivery targets for 2026. Boeing is also pushing back its free cash flow target, now expecting to generate $10 billion in free cash flow in 2029, a year later than analysts had expected.

First major cut since 2024

The planned reduction is Boeing’s first major workforce cut since 2024, when it announced large-scale layoffs after a damaging strike and production crisis. The Commercial Airplanes division, headquartered in Seattle, had 50,494 employees as of December 2025, according to the company’s website. A 5 percent reduction would therefore affect around 2,500 positions.

Employees in several US states must receive 60 days’ notice before layoffs take effect. The International Association of Machinists and Aerospace Workers’ District 751 said it had been notified of the company’s plans.

Recovery still fragile

Boeing’s recovery from years of production problems, safety scrutiny and financial losses remains fragile. The company has a large order backlog, but its factories have struggled to raise output at the pace it promised airlines. Boeing shares were down less than one percent in afternoon trading after the news.

The cuts come as the wider aviation industry watches Boeing’s output closely: airlines waiting for 737 MAX deliveries face further delays, while rival Airbus continues to hold a production advantage in the single-aisle market.

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Source: Reuters via Business Standard, New Straits Times and Malay Mail, November 10, 2026