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Boeing Shakes Up Shrinking Defense Business

(UPI/Boeing Aircraft Handout)
The Boeing Phantom Ray unmanned airborne system (UAS), just one of the models of aircraft Boeing produces, during an unveiling ceremony in St. Louis on May 10, 2010. Reports state China will announce deals today including one to buy 200 Boeing airplanes.

Updated at 5:20 p.m. with comments from Boeing.

Boeing’s defense arm will find another $1.6 billion in cuts by 2013.

The company announced the additional reductions today, though no details were provided. Defense , Space and Security, which is based in St. Louis, has already cut more than $2 billion since 2010, including a 30 percent reduction in management-level positions. 

Spokesman Todd Blecher says much of that has already happened, and the last 10 percent of the cuts will come by the end of the year. On Wednesday, Boeing reassigned several defense executives. It's also  cut defense facilities by 10 percent ,"and is looking for more over time." The company did not say which facilities will be affected.

There's nothing too small, Blecher said.

"Be it whether we’re looking at vacating an office building, as we are in southern California for example, or whether we’re restructuring parts of our business units as we have done and announced today, it’s sort of an all hands on deck effort to remain competitive," he said, acknowledging that some people will be negatively affected.

The need for additional cuts has nothing to do with the election results or the looming fiscal cliff, Blecher said.

"There are a number of opportunities outside the US that we’re pursuing that can offset portions of that trend line. But overall, we’re looking at at least a flat situation."

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Rachel is the justice correspondent at St. Louis Public Radio.

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