Boeing [BA] yesterday said it will reduce its manufacturing footprint and employee count at several defense electronics facilities in El Paso, Texas, in response to expected defense budget cuts.
Boeing said that it will move from three buildings into one, which will reduce its occupied square footage by 50 percent, and will also reduce jobs there by up to 160 positions.
“This difficult decision was based on a thorough study of the current and future business environment and the need to remain competitive,” Derek McLuckey, director of Boeing Network Operations. Boeing said that employees affected by the job reductions will receive assistance finding employment elsewhere in Boeing or outside the company.
McLuckey said that Texas still “remains critical” to the company as more that 6,000 of its employees work throughout the state. He also said that Boeing spent $2 billion in 2011 with its suppliers in Texas.