Sequestration Or Not, U.S. Firms, DoD Will Take a Hit

November 18, 2012

Even if the U.S. Congress is able to hammer out a debt deal that avoids sequestration in January, the resulting agreement will likely result in billions of dollars in additional cuts to the Defense Department — perhaps as much as $25 billion — likely forcing the military to alter its roles and missions.

Internally, some of the nation’s largest defense companies are also planning for a possible $25 billion cut annually from current spending levels. That $25 billion is half of what DoD is expected to absorb annually under sequestration. This month, Boeing announced a major reduction among its executive ranks as it prepares for a decline in U.S. defense spending.

 

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