EL PASO, Texas, Jan. 11 (UPI) -- Boeing, citing anticipated U.S. military budget cuts, is downsizing its operation in El Paso, Texas, and reducing its workforce there.
"The 370 workers at the site manufacture electronics for a variety of Boeing products," the company said. "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."
Consolidation of its facilities and workforce reduction will be completed by the end of 2014 and will help the company become more affordable for government customers and more competitive.
"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. "We recognize this will affect the lives of many of the highly skilled men and women who work here, so we will do everything possible to assist our employees, their families and our community through this difficult time."
Employees affected by the downsizing will be given help in finding employment with Boeing elsewhere or with other companies, Boeing said. The company will also offer financial counseling and retirement seminars.