Boeing Co on Monday told its workers that it expected to cut as many as “several hundred” jobs in its satellite business through the end of 2015 due to a downturn in U.S. military spending and delays in commercial satellite orders.
Multiple commercial orders were being delayed by recent failures of launch vehicles and uncertainties about the future availability of financing from the U.S. Export-Import Bank, whose government charter lapsed on June 30, the company told key managers in an internal communication.
Boeing spokesman Tim Neale confirmed the reductions and said the total number of people affected would be finalized in coming months. Some could find work in other parts of Boeing, he said.
He said the reductions were “necessary to remain competitive for ongoing and future business.”