Chicago: Boeing Co (BA.N) will trim staff on its missile defense program and future combat systems by about 1,000 - about 1.4 per cent - because of US Defense Department budget cuts, the company said on Wednesday.
"Shifting defense department priorities and budget cuts are requiring the company to bring the workforce into alignment with the funding in the near term and the work packages that our customers are providing," Boeing spokesman Daniel Beck said.
Boeing is the Pentagon's No 2 contractor, behind Lockheed Martin Corp (LMT.N).
Citing an information blackout period ahead of its quarterly earnings report, Beck declined to say whether the cuts were part of the 10,000 that Boeing has already said it is targeting companywide this year.
The latest Boeing job cut announcement comes the same week that Lockheed said it would cut 600 jobs after the Pentagon canceled a contract to build a new fleet of helicopters for the president.
Beck said the 1,000 cuts on Boeing's defense side would affect staffing at various work sites across the United States on the missile defense program and future combat systems.
Boeing's defense unit was hit hard by sweeping budget cuts announced by the Pentagon this year.
The US Army's Future Combat Systems program is being restructured and opened to more competition, while missile defense programs is being scaled back.
NASA too is laying off 400 workers which includes about 150 to 160 jobs from Houston. The actual layoffs will not come in to effect till October.
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