BA Stock Edges Lower As Boeing Reportedly Trims 5% Of Commercial Airplanes Workforce

• CEO Kelly Ortberg indicated late last month that significant ramp-up of 737 Max output is now not expected until the second half of 2027. 
• The commercial division employed about 50,500 people as of the end of 2025. 
• As of the end of Q3, Boeing’s Commercial Airplanes backlog stood at more than 6,300 airplanes, valued at a record $612 billion.

Shares of Boeing Co (BA) slipped about 1% on Monday following reports that the company is making fresh workforce reductions tied to a slower-than-expected production recovery in its commercial airplanes unit.

According to a report from CNBC, Boeing said it will reduce the commercial airplane workforce by about 5% through a combination of attrition and involuntary layoffs, with notifications beginning in December. Stephanie Pope, head of the commercial aircraft unit, reportedly told employees in a memo that revised production schedules and lower aircraft output have left the division overstaffed relative to its updated business plan. The company is still working to stabilize rates on the 737 Max, its best-selling model.

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CEO Kelly Ortberg indicated late last month that significant ramp-up of 737 Max output is now not expected until the second half of 2027—later than previously projected. Boeing has been working to stabilize production at 47 Max aircraft per month and is targeting 52 per month only in the second half of 2027, the CEO said on the company’s third-quarter earnings call. The commercial division employed about 50,500 people as of the end of 2025, implying that the workforce reduction will impact about 2,500 employees.

Commercial Segment Financial Strain

The cuts come against a backdrop of persistent losses in the commercial airplanes business. In the third quarter of 2026, the unit generated roughly $10.7 billion in revenue but posted an operating loss of $697 million. The division delivered 161 aircraft during the quarter. Higher supply-chain costs, a less favorable mix of deliveries, and elevated expenses weighed on results, even as overall company losses narrowed sharply from the prior year.

Boeing has already pushed back its timeline for reaching a stable 47-per-month 737 rate into early 2027, missing earlier internal targets and its 2026 delivery goals. Free-cash-flow expectations have also been tempered, with management guiding to roughly $3 billion in 2027—below prior analyst consensus.

However, the FAA certified the smallest 737-7 variant in August and the largest 737-10 in October, completing type certification for the main 737 MAX family after multi-year delays and clearing the way for deliveries. First deliveries of the 737-7 to launch customer Southwest Airlines are expected toward late 2026 or into early 2027, while the first deliveries of the 737-10 are expected in early 2027.

As of the end of Q3, Boeing’s Commercial Airplanes backlog stood at more than 6,300 airplanes, valued at a record $612 billion.

How Did BA Retail Trader React?

On Stocktwits, retail sentiment around BA stock stayed within the ‘bearish’ territory over the past 24 hours, while message volume stayed at ‘low’ levels.

A Stocktwits user expressed optimism about the stock breaching the $200 mark.

Another user highlighted that the layoffs are not impacting the stock positively because of the production issues underlying it.

BA stock has dropped 21% year-to-date. 

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