US aerospace giant The Boeing Company said overnight it would eliminate 900 jobs at its Wichita, Kansas plant because of US defence budget cuts, program delays and contract completions.
The job cuts affect a quarter of the plant's workers and follow a review of the US Defence Department budget for the current and future years, Boeing said.

"Since December 2005, our customers have informed us of significant shifts in their budget and programs," said Derek McLuckey, general manager of the Wichita site, which is part of the company's Integrated Defence Systems (IDS) business, said.

"This has a profound impact on the work we perform and has forced us to refocus our business in Wichita."

The plant dealt with design and upgrades for the KC-135 tanker, 767 tankers, B-52 Stratofortress, the nation's executive fleet, Airborne Laser and international programs.

The plant will continue to function as an engineering centre but will now focus primarily on military 747s and wide-body aircraft modifications and upgrades, Boeing said.

The Boeing Integrated Defence Systems is a Boeing subsidiary headquartered in St. Louis, Missouri in the US.