Boeing on Monday said it had started issuing notices for what could be hundreds of layoffs at its satellite business, a move it blamed partly on the stalled reauthorization of the U.S. Export-Import Bank, which supports many of its sales.
The aerospace giant expects to lay off “several hundred” workers over the coming months and into early 2016, a company spokesman said.
Boeing declined to say what portion of its satellite business, which is largely based in Southern California, will be affected by the cuts.
A Boeing spokeswoman told The Denver Post on Tuesday that “at this time we do not believe there should be an impact to our workforce in Colorado.”
Boeing last week confirmed it had lost a satellite deal from Asia Broadcast Satellite because the company couldn’t secure financing.
“While this is not solely being caused by the expiration of Ex-Im Bank, this is a factor for the customers who have decided to maybe hit the pause button or look somewhere else,” the spokesman said of the planned job cuts.
Boeing has cut thousands of jobs in its defense arm over the past four years, citing the impact of Pentagon budget cuts. The Ex-Im Bank was closed to new business from July 1 after Congress failed to reauthorize its charter, curtailing future financing commitments. U.S. satellite manufacturing relies on export financing.
