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Boeing Statement on FCS Staffing Reductions

ST. LOUIS, July 17, 2009 -- The Boeing Company today issued the following statement regarding work force reductions on the Future Combat Systems (FCS) program:

"Due to the decision by the Pentagon directing the U.S. Army to restructure the FCS program, as well as related funding reductions anticipated in fiscal year 2010, Boeing and its partner SAIC will be reducing their combined work force by approximately 30 percent. Boeing will begin issuing 60-day advance layoff notices to its employees today, July 17, at several sites nationwide. Approximately 70 Boeing employees will receive notices today. Additional notices are expected to be issued on July 31.

"Boeing and SAIC are committed to preserving as many jobs as possible for these valued, highly skilled employees and the companies are taking aggressive steps to lessen the impact of the funding reductions. These steps include making every effort to redeploy FCS personnel to other programs within Boeing and SAIC, as well as reassessing contract labor requirements. The companies will work with affected employees to help them through this transition by offering career services and other assistance.

"Boeing and SAIC are committed to working closely with their Army customer to implement required changes to the program in a timely and efficient manner. They will continue to support the Army in delivering these important networked capabilities to soldiers as soon as possible."

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Contact:

Matthew Billingsley
Boeing Future Combat Systems
703-647-1444
matthew.p.billingsley@boeing.com




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