Boeing officials announced that they will consolidate its El Paso facilities by the end of 2014, which will result in the layoff of up to 160 employees. 

Officials said the company's strategy is to increase affordability for government customers and be more competitive.

There are 370 workers at the site, and anticipated U.S. defense budget cuts may result in less of a demand for manufactured electronics for Boeing products, officials said. The company will cut down by moving from three buildings to one, which will result in up to 160 layoffs, officials said.

"This difficult decision was based on a thorough study of the current and future business environment and the need to remain competitive," said Derek McLuckey, director of operations for Boeing Electronic & Information Solutions. "We recognize this will affect the lives of many of the highly skilled men and women who work here, so we will do everything possible to assist our employees, their families and our community through this difficult time."

Those who are affected by the layoffs will get help finding employment within or outside of the company, financial counseling and retirement seminars, officials said.

"Texas remains critical to Boeing with more than 6,000 employees working at Boeing locations and subsidiaries throughout the state," McLuckey said. "We also have valued relationships with suppliers in Texas. In 2011, Boeing spent $2 billion with our supply base here."