Market Overview

Boeing Announces Consolidation of El Paso Plants, to Cut 160 Jobs

Share:
Related BA
Deutsche Bank Offers 3 Reasons To Consider Boeing
CNBC's Stock Pops & Drops From February 23
Lower GDP Estimate Weighs on U.S. Indexes (GuruFocus)

Boeing (NYSE: BA) will consolidate its El Paso facilities and reduce the workforce there by the end of 2014. The move is part of the company's strategy to increase affordability for government customers and become more competitive in an increasingly global marketplace.  

The 370 workers at the site manufacture electronics for a variety of Boeing products. Anticipated U.S. defense budget cuts likely will mean less demand for these items. Therefore, Boeing will reduce occupied square footage 50 percent by moving from three buildings into one, and will reduce employment by up to 160 positions.   

Affected employees will receive assistance with finding employment elsewhere in Boeing or outside, as well as financial counseling and retirement seminars.

Despite this consolidation, "Texas remains critical to Boeing with more than 6,000 employees working at Boeing locations and subsidiaries throughout the state," McLuckey said. "We also have valued relationships with suppliers in Texas. In 2011, Boeing spent $2 billion with our supply base here."

Posted-In: News

 

Related Articles (BA)

Around the Web, We're Loving...

Get Benzinga's Newsletters

Benzinga PRO content