Boeing may soon announce job cuts in its satellite business due to a drop in US military spending and delays in orders for commercial satellites.
While Boeing is still undecided about the total number of jobs being affected, Reuters quoted Boeing spokesman Tim Neale as saying that the company will make a decision in the coming months.
Although some employees will be accommodated in other parts of the company, job cuts are considered as imperative in order to remain competitive, Neal added.
The company has been experiencing delays with several commercial orders due to recent failures in satellite launches, as well as over the uncertainty about the US Export-Import Bank.
The Exim bank, which provides loans and guarantees to companies, has ceased to write new loans after its government charter lapsed on 30 June.
The bank has provided around $1bn a year in loans to finance satellites and space launches.
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By GlobalDataBoeing is also being impacted upon by the termination of an $85m satellite contract with the Asia Broadcast Satellite (ABS).
While Neale said that Boeing officials were still trying to find an alternative financing solution with ABS, the latter is reportedly in negotiations with other satellite makers.
