Why Boeing is Reshaping its Defence Supply Chain Workforce

Boeing is getting ready to cut 300 supply chain jobs from its defence division, with plans to notify the affected workers in the first week of February.

This comes after a January announcement where the company said it would cut 10% of jobs in the Boeing Defence supply chain work group.

After a prolonged period of struggle, Boeing is hoping that the company shake-up will be the fix it needs.

Supply chain reduction

Boeing is one of the world's largest aerospace companies and leading manufacturers of commercial jetliners and defence crafts. It designs, manufacturers and sells plans, rockets, satellites and missiles around the world. 

The company has seen some significant changes across recent years, witnessing a poor financial year in 2024 with led to companywide job cuts at the close of the year. Its Washington workforce shrank 3.7% as a result.

However, Boeing's total workforce grew 5.5% in 2025, following its acquisition of Spirit AeroSystems, adding approximately 17,000 employees to Boeing's global numbers. Boeing also sold its flight navigation unit Jeppesen, which was finalised in November 2025 and affected 3,900 workers. 

In 2025, Boeing's defence and global services had less than 20,000 workers each, with employment in the defence and space division decreasing by 3.8% (or 751 people). Now, it has plans to reduce that workforce by a further 300. 

The defence division will see a loss off 300 supply chain jobs, spread across a range of sites around the US. It currently has 1,300 job openings and is attempting to divert the supply chain job losses to other positions within the company.

“Boeing regularly evaluates and adjusts its workforce to stay aligned to our commitments to our customers and communities,” the company said in an emailed statement.

All supply chain, sustainability, Scope 3 and net zero leaders should attend:

• Procurement and Supply Chain LIVE: The Net Zero Summit - QEII Centre, London, March 4-5
• Procurement and Supply Chain LIVE: The US Summit - Navy Pier, Chicago, April 21-22

Co-located with Sustainability LIVE, these events brings together CSCOs, CSOs and senior decision-makers at a moment when sustainability, supply chains and commercial performance are increasingly interconnected.

Tickets can be booked online today for The Net Zero Summit and The US Summit. Group discounts available.

Financial outlook

This announcement follows the release of Boeing's 2025 Fourth Quarter Results. Though it reported company-wide success, with a Q4 revenue up 57% year-on-year to reach US$23.95bn, some of its core businesses showed to be lacking. Following the release, shares in the company fell 2.3%, demonstrating that investor confidence is dropping. 

Though the Defence, Space & Security sector saw a 37% YoY growth for Q4, this period still saw a US$507m loss from operations. This includes losses on the KC-46A programme, which Boeing states was "primarily driven by higher estimated production support and supply chain costs."

Despite the sector-specific concerns, Boeing reported a FY 2025 revenue of US$89.5bn, with 600 commercial deliveries reflecting the highest annual totals since 2018. 

“To continue our turnaround, we still have important work ahead of us – perhaps even more than what we accomplished last year,” says Chief Executive Officer Kelly Ortberg.

What else is shifting within Boeing? 

The job cut announcements are not the only workforce changes taking place within Boeing. Between 250 and 300 workers will be affected within its commercial airplanes division, as work on the 787 Dreamliner program will move from Seattle to South Carolina.

 According to the Society of Professional Engineering Employees in Aerospace (SPEEA), this would mean moving 300 jobs from a space where they have representation, to a non-union state. 

These cuts and disruptive changes come amid a period where Boeing is attempting to restore its financial health and company culture, but Ray Goforth, Executive Director of SPEEA, says the company's handling of it all "casts a pall over upcoming contract negotiations". 

As Boeing enters another year of job cuts, particularly in the sector which has already seen a hit, it hopes that these changes will be the fix to its period of financial loss.