A U.S. defense and government services contractor based out of the Kansas City suburb of Lee’s Summit is laying off nearly 700 workers beginning Friday. Pacific Architects and Engineers has informed the state the cutbacks are expected to be permanent.

Kansas City area firm to slash nearly 700 jobs Friday

The company says its contract work with the federal government is being significantly reduced due to budget tightening.

“As you may be aware from recent media reports, the coronavirus (COVID-19) pandemic has had a significant impact on UCIS’s (The United States Citizenship and Immigration Services) financial outlook. Since the declaration of the national emergency, USCIS has reported that its application and petition receipts dropped to half their previous levels and with them, agency revenue significantly declined. USCIS has requested $1.2 billion in emergency funding from Congress due to the forecast that the agency will run out of money this summer. PAE has been advised that this agency budget shortfall necessitated this sudden and unexpected contract change,” a letter to the Missouri Department of Higher Education and Workforce Development says.

Pacific Architects and Engineers says most of the positions affected are general clerk workers.

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