The Boeing Co. [BA] plans to lay off about 750 employees in Southern California because of a downturn in its satellite assembly and integration business, the company announced.

But some employees losing their jobs will be given work elsewhere in the company. Boeing is the second-largest defense contractor, and also has a huge civilian component making airliners and other products.

Most job cuts will be in engineering, although all skills will be affected, and will affect workers mostly in El Segundo and Seal Beach, Calif. Boeing expects to issue 60-day notices in May for an initial group of 100 employees, with layoffs to occur in July. Another group of employees will be notified at the end of June with redeployment occurring in July and August. Boeing is trying to redeploy many of the affected workers in California and at other sites where the company has suitable job openings.

Craig Cooning, vice president and general manager of Boeing Space and Intelligence Systems (S&IS), said the division has made substantial progress in decreasing costs and operating more efficiently, but the delay in the award of several large government programs, coupled with other market conditions, make the work force reduction unavoidable.

"The stretching out of government contract awards, along with a continuing lighter demand in the commercial marketplace for large, high-power satellites, has created a surplus in the work force that must be addressed now so that we are competitive," Cooning said. "We will do as much as possible to help our employees locate other opportunities within Boeing."

The company will help affected employees find positions at other Boeing locations and provide career-counseling and outplacement services, such as r�sum� writing and interviewing skills development.

"This is a difficult time for employees in our space systems organization, but we are committed to strengthening the business," said Cooning. "These reductions in force are necessary to accomplish that goal."

S&IS plans to have a work force of approximately 6,450 employees at the end of this year, compared 7,200 currently.