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The Boston Globe


Mass. defense industry on hold as cuts near

Jobs slashed, projects halted amid uncertainty

Even though automatic spending cuts by the US government have yet to go into effect, defense contractors in Massachusetts are already laying off employees, freezing salaries, and putting new projects on hold because of uncertainty over the federal budget.

Business executives said the local ­defense industry is in a state of paralysis, unable to make basic decisions because political leaders in Washington have so far been unable to agree on a budget compromise that would head off
some $46 billion in automatic spending cuts to military programs this year that are scheduled to start taking effect Friday.

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