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Boeing layoff hits Wichita

Mass layoffs had become scarce in the defense industry, but we've now had three in the last three months. First, BAE Systems axed 200 employees in Alabama. Bell Helicopter then shed 500 workers, including 20% of its executive corps, in Texas. (Read more.) Now, Boeing is cutting 800 jobs in Kansas.

Guess which program Boeing is blaming this one on?

Boeing attributes the reductions to the end of some programs and the delay in the U.S. Air Force tanker-replacement program. The layoffs will impact managers and both salaried and hourly workers.

Boeing will deliver 60-day layoff notices to approximately 76 employees on Friday, Nov. 21. Their last day of work is scheduled for mid-January. The company will deliver the balance of the layoff notices throughout 2009, with most occurring in the first half of the year.

The announcement marked a rare public reappearance of Boeing executive Scott Strode. He was formerly head of production for the 787 airliner, which is mired in massive delays caused mainly by a production system meltdown. Now, Strode is the general manager for the Wichita site. This is part of his released statement:

"A combination of events are limiting our business options and forcing us to reduce our current employee total. We also are taking steps to restructure our business in order to lower our rates and become more affordable for customers."

Recall that Boeing is working on a plan to slash its production rate by half on the C-17 (read more). Wichita's remaining Boeing employees work on these programs: the US. government executive fleet, B-52/Refueling Systems Support, 767 International Tanker, Mission Planning, engineering support for Airborne Laser and 747-8, and Integrated Logistics Support.

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