The Integrated Defence Systems of Boeing said on Wednesday that it is cutting 1,000 jobs to accommodate the drop in demand in the federal defence budget.T he lost jobs represent about 1.5  of the 70,000 employees in the defence branch.

 

Branch chief Jim Albaugh told Boeing employees that the company must reduce its staff according to the size of contracts from clients, a company spokesman said.

 

The spokesman did not confirm that the job reductions were part of a previously announced plan to cut 10,000 positions. Details could emerge when the company releases its quarterly results July 22.

 

Boeing is the second largest defence contractor with the US government after rival Lockheed Martin. All told, Boeing employs 160,000 workers.