Global defense company BAE Systems is laying off 600 employees at its location in Sealy, Texas.  The layoffs come as a result of 17 year old contracts coming to an end as well as a smaller budget for defense.  The company is also trying to control its costs and keep its competitiveness in the marketplace.

According to the Chris Chambers, the vice president and general manager of the Tactical Wheel Vehicle Product Line which oversees the Sealy plant, “Making a decision like this is never easy, as we recognize the impact reductions have on our employees, their families, and the communities where we live and work.  Although it’s a difficult decision, it’s a necessary decision, and one that we believe will better position us for growth in today’s challenging economic environment.”

As a result of making these cuts, there will still be about 1,200 employed at the Sealy, Texas location.  According to the company, the layoffs will happen through end of June.