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Boeing Is Cutting 500 Jobs From Its Defense and Space Units

November 15, 2016

Farnborough International Airshow 2014Farnborough International Airshow 2014
A Boeing aircraft. Photograph by Dan Kitwood—Getty Images

Boeing, the world’s biggest planemaker, said on Tuesday that it would cut 500 jobs over four years and shut two plants as it revamps its defense and space unit.

The company, which is shutting plants in El Paso, Texas and Newington, Va., said some jobs in Huntington Beach plant would move to El Segundo, Long Beach, and Seal Beach in Southern California.

Boeing (BA) also said many positions in Kent, Wash. will move to nearby Tukwila.

The company said about 1,600 positions will move to Los Angeles County, Calif.; 500 to St. Louis, Mo. and about 400 to Huntsville, Ala. as part of the consolidation.

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The changes related to job cuts and the consolidation were not material, a Boeing spokesman told Reuters.

The company also said it would create a new global operations group that would include its defense units in Australia, Saudi Arabia, and U.K.. The unit will he headed by David Pitchforth, managing director of the company’s U.K. defense unit.

Boeing’s defense, space, and security business, which had about 48,000 employees as of Oct. 27, accounted for 31.4% of the company’s total revenue of $23.9 billion in the latest quarter.