Friday, January 11, 2013
Boeing to Cut 160 Jobs in Texas, Cites Defense Cuts
Boeing announced plans to reduce its workforce at a Texas plant by up to 160 jobs, in anticipation of the sequester triggering large federal defense spending cuts in March.
The company said by 2014 it will eliminate two of the three buildings at its El Paso, Texas, facility, where currently a total of 370 employees produce electronics for their airframes and other products.
“Anticipated U.S. defense budget cuts likely will mean less demand for these items,” Boeing said in a statement.
In addition to the $487 billion in spending cuts from the Budget Control Act of 2011, the Department of Defense would lose another $500 billion over the next decade unless Congress produces a restructured deficit reduction plan by March, according to consulting firm Deloitte.
"This difficult decision was based on a thorough study of the current and future business environment and the need to remain competitive," said Derek McLuckey, director of Boeing Network Operations.