Boeing Co., plans to cut several hundred jobs in its satellite business by the end of 2015, due to delays in commercial satellite orders, according to a report from Reuters.
Decreased spending from the U.S. military was also cited as reasons for the job cuts.
Tim Neale, a spokesman from Boeing, told Reuters that the reductions and the total number of people to be laid off will be finalized in the coming months.
He added that the job cuts were "necessary to remain competitive for ongoing and future business."
FinanzNarchrichten.de added that Boeing said they have already started issuing notices about the layoffs at their satellite business.
Boeing's satellite business is largely based in Southern California.
Reuters adds that multiple orders of commercial satellites were being delayed by companies due to the uncertainties of financing being available in the future from the U.S. Export-Import Bank (EXIM).
EXIM's government charter has already lapsed on June 30.
Reuters adds that this is the latest fallout from EXIM, the export credit agency of the U.S. government, being unable to write new loans and trade guarantees.
A debate is still ongoing with regards to EXIM's future.
Reuters adds that the Tea Party in the U.S. Congress, a conservative, has decided not to vote to renew the agency's charter.
They argue that the bank acts like a "corporate welfare" for big companies like Boeing.
FinanzNarchrichten.de added that EXIM, which is designed to help facilitate exports of U.S. goods and services, supports most of Boeing's satellite sales.
The report adds that the manufacturing industry of U.S. satellite relies heavily on export financing.
It accounts for about 60 percent of international satellite sales.
Neale told Reuters that the uncertainty of EXIM's future is making many of their buyers nervous.
"In the absence of EXIM, Boeing may need to serve as the lender of last resort, but there are real limits to how much of this the company can do," he said.
Backers of EXIM argues that the bank creates revenue for the U.S. government and helps level the playing field for U.S. companies, according to Reuters.
Rivals of U.S. companies in other countries receive similar trade credits.
