Budget Cuts And Priorities Cause Boeing Wichita Layoffs

Jan. 19 /PRNewswire/ -- WICHITA, Kan., Jan. 19 /PRNewswire-FirstCall/ -- Boeing (NYSE: BA) officials announced today that 60-day layoff notices will be issued to 84 employees at its Wichita site on Jan. 20, 2006, as a result of Department of Defense program delays and budget issues.

Layoff notices will go to hourly and salaried employees within the company's Integrated Defense Systems (IDS) business unit.

Derek McLuckey, General Manager of the site, said that the layoffs announced today are a result of changing business conditions that have reduced staffing needs for the site. McLuckey said that DOD budgetary pressures have caused major shifts and reductions in some site programs

"We are making adjustments in the first quarter of this year because of changes in our military support business. These changes have forced us to make this necessary decision to ensure our competitiveness," McLuckey said.

McLuckey said Boeing in Wichita and IDS officials would continue monitoring the DOD budget throughout 2006.

"This is a situation that could have impact on our employment levels as the year progresses," McLuckey said.

Workers affected by the layoffs will be offered outplacement services by Boeing human resources professionals. Services include resume writing, job coaching, and assistance with identifying jobs opportunities both inside Boeing and in the local Wichita market.

Today Boeing has approximately 3,670 employees in Wichita who provide sophisticated engineering, design, logistics support and modifications for the nation's military aircraft fleet and international customers. The site is part of Logistics Support Systems, which is a business unit of Boeing Integrated Defense Systems. Wichita key programs include design and upgrades for the KC- 135 tanker, 767 tankers, B-52 Stratofortress, the nation's executive fleet, Airborne Laser and international programs.

A unit of The Boeing Company, Boeing Integrated Defense Systems is one of the world's largest space and defense businesses. Headquartered in St. Louis, Boeing Integrated Defense Systems is a $30.5 billion business. It provides network-centric system solutions to its global military, government, and commercial customers. It is a leading provider of intelligence, surveillance and reconnaissance systems; the world's largest military aircraft manufacturer; the world's largest satellite manufacturer and a leading provider of space-based communications; the primary systems integrator for U.S. missile defense; NASA's largest contractor; and a global leader in sustainment solutions and launch services.

CONTACT: Forrest Gossett of Boeing Integrated Defense Systems,

Web site: http://www.boeing.com/

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