LOS ANGELES -- The Boeing Co. says it will lay off 750 Southern California employees following the loss of a lucrative satellite contract to a rival aerospace firm.

Boeing says in a statement Tuesday the cuts will be focused on engineering staff at its El Segundo and Seal Beach plants.

The company says the first 100 employees will be notified this month, with the layoffs to occur in July.

The reduction will take Boeing's satellite division staff from 7,200 employees to about 6,450.

The move comes after Boeing lost a major U.S. Air Force satellite contract to rival Lockheed Martin Corp.