Boeing to cut 5% of commercial airplane workforce

Boeing Co. shares turned volatile in midday Monday trading after reports that the company will reduce its commercial airplane workforce by 5% as it works to stabilize production.

The stock initially fell nearly 2.9% following the announcement but later recovered those losses.

Stephanie Pope, chief executive officer of Boeing Commercial Airplanes, reportedly told employees in a message Monday that adjusting production schedules and reducing aircraft output has left the company overstaffed.

"We need to reset the pace of our production rate ramps to provide our factories and supply chain partners additional time to achieve stability," Pope wrote.

The Seattle Times first reported the workforce reduction, which will be implemented through a combination of attrition and voluntary layoffs. Notifications to affected employees will begin next month.

The announcement follows Boeing’s recent decision to delay plans to increase production of its 737 Max narrowbody jet into 2027. The company had originally targeted the end of this year for the production increase.

This marks the first workforce reduction since CEO Kelly Ortberg cut 17,000 jobs after joining Boeing in late 2024.