Boeing Co. (BA) has decided to consolidate the majority of its defense services and support-related activities from Washington state to other locations in the U.S. as part of its efforts to improve the competitiveness of its Boeing Defense, Space & Security unit.
The majority of the work will be relocated to Oklahoma City and St. Louis, where similar activities are undertaken. Some additional work will be shifted to Jacksonville and Patuxent River.
The transition could take up to three years to complete and affect about 2,000 employees.
Once completed, around 900 positions could be added to Oklahoma City and potentially up to 500 positions to St. Louis.
"The decision to consolidate these activities was difficult because it affects our employees, their families and their communities. However, this is necessary if we are going to differentiate ourselves from competitors and stay ahead of a rapidly changing global defense environment," said Chris Chadwick, Boeing Defense, Space & Security president and chief executive officer.
As much as feasible, the company will leverage Boeing Commercial Airplanes' presence in Puget Sound to mitigate the impact of this decision on individual employees.
Additionally, the company will provide assistance and resources for employees to help them throughout this transition, including job search resources, retirement seminars, and career counseling services.
Programs that will be relocated include services and support work for Airborne Warning and Control Systems, Airborne Early Warning & Control and the F-22 Raptor.
Even with the announced moves, Boeing Defense, Space & Security continues to have a strong presence in the Puget Sound region due to production of the P-8 maritime patrol aircraft and KC-46A Tanker, which are based on the company's 737 and 767 commercial airplanes.
The company's defense business has about 5,200 employees in the Puget Sound region.
BA closed marginally higher on Monday at $128.77.
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