Boeing to lay off up to several hundred employees in satellite division
LOS ANGELES — Boeing Co. said it plans to lay off as many as several hundred employees at its satellite division in Southern California, the Los Angeles Times reported Tuesday.
According to the newspaper, Boeing said the cuts were needed after a customer could not get financing through the Export-Import Bank and canceled an order for a pricey satellite.
At the same time, recent rocket failures have delayed the start of work on other satellite orders, the company said, and the division has suffered as the Pentagon continues to reduce spending.
Most of the affected employees work in El Segundo, Calif., where the aerospace firm operates a large satellite factory, Boeing spokeswoman Linda Taira said.
Taira told the Times that Bermuda-based ABS, a global satellite operator, had recently canceled an order for one of Boeing’s new electric-powered satellites because of its inability to finance the purchase through the Export-Import Bank.
This summer, House Republican leaders succeeded in their quest to shut down the bank, which helps U.S. companies sell their goods overseas.
Taxpayers provide no money to the Ex-Im Bank, which is funded by the interest and fees it receives on the loans. But conservative Republican leaders have called the federal government’s aid to the bank corporate welfare.
Boeing managers told employees Monday about the layoffs, which will happen by year’s end, Taira said.
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