Source : INDIA TODAY NEWS
Boeing plans to reduce its commercial aircraft division’s workforce by 5 per cent as the US aerospace major struggles to ramp up jetliner production. The job cuts will be carried out through employee attrition and involuntary layoffs, with the first layoff notices expected to be issued in December.
Boeing Commercial Airplanes chief Stephanie Pope informed employees about the planned workforce reduction in an internal memo. She said the company needed to adjust production schedules to give its factories and supply chain partners more time to stabilise operations, as reported by Reuters.
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The decision comes as Boeing faces continued challenges in meeting its aircraft production targets.
BOEING DELAYS PRODUCTION TARGETS
Boeing has been struggling to increase output of its popular 737 narrowbody aircraft. Chief Executive Officer Kelly Ortberg told analysts last month that the company would miss its production and delivery targets for the aircraft this year.
The company now expects to reach a production rate of 47 737 jets per month in early 2027. This is a delay from its earlier projection of achieving that level by summer 2026.
Production challenges have also affected other aircraft programmes. Boeing has struggled to increase output of its 787 widebody jets from eight to 10 aircraft per month. Its 767 and 777 programmes have also faced disruptions, Reuters reported.
FINANCIAL RECOVERY FACES ANOTHER DELAY
The workforce reduction comes at a critical time for Boeing’s financial recovery. Ortberg has indicated that the company does not expect to achieve $10 billion (approximately Rs 93,487 crore) in free cash flow until 2029, a year later than analysts had anticipated.
The financial target is considered an important milestone as Boeing continues to recover from years of operational crises, controversies, mounting debt and increased regulatory scrutiny.
The company’s commercial aircraft division had 50,494 employees as of December 2025, according to its website.
Reuters also reported that several Boeing employees had expressed concerns about possible layoffs even before Monday’s announcement.
(With Reuters inputs)
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SOURCE :- TIMES OF INDIA
