Boeing Plans to Cut 5% of Commercial Airplanes Workforce

US aircraft manufacturer Boeing has announced plans to reduce its commercial aircraft workforce by approximately 5%, citing production challenges and changes to its business plans. Stephanie Pope, head of Boeing’s commercial airplanes division, said the company had more employees than required after adjusting aircraft production schedules and output. The slower-than-expected increase in production of the 737 MAX aircraft, along with delays in manufacturing aircraft wings, has affected operations. In an internal memo to employees, Pope said the workforce would be reduced to align staffing levels with the revised business plan. While some employees may leave through retirement, others will face layoffs. Notifications are expected to be issued in December. Boeing CEO Kelly Ortberg told investors last month that a significant production increase was unlikely before the second half of 2027. The company is currently targeting production of around 47 aircraft a month, with a goal of increasing that figure to 52 in the second half of 2027.

Meanwhile, Australian national carrier Qantas Airways plans to eliminate 850 jobs as part of a broader operational restructuring. CEO Vanessa Hudson said the move was aimed at streamlining the company’s operations in response to the growing use of artificial intelligence and changes in the technology landscape. The first phase of job cuts will affect employees in finance, procurement, human resources and marketing. Qantas is also considering outsourcing some roles to consulting firm Accenture, with certain positions expected to be transferred to the company. The outsourced teams may include a significant number of employees based in India. Hudson said the first phase of the workforce reduction is expected to take place around mid-2027.