Boeing Plans More Defense Side Cuts
Across-the-board spending cuts known as the sequester are set to take place next Friday if Congress doesn’t reach a deal.
Dennis Muilenburg is head of Boeing’s defense business. He says sequester or no, the company has been preparing for long-term cuts in defense spending. Boeing has already cut more than $2 billion in expenses as the Iraq War wound down.
"This included some tough workforce reductions, facilities closures, things we’ve done to streamline overhead, reduce management levels, all things to stay ahead of the curve on these potential topline impacts," Muilenburg says.
Last year, Boeing announced it would close its military jet facility in Wichita, Kan. A Boeing spokesman says the company plans to cut an additional $1.6 billion in defense expenses over the next couple of years. He declined to say how many jobs would be eliminated.
Muilenburg says many of Boeing’s defense workers have found jobs on the commercial side of the company as Boeing ramps up airplane production.
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