Who’s Firing:
Northrop Grumman Blames Defense Budgets for Recent Round of Layoffs
Northrop Grumman cut its southern California workforce by nearly 600 by accepting buyouts from employees. The aerospace employees will leave the company sometime between September and December. “Because of defense budget uncertainties and pressures on current and projected business, we must adjust our budgets by the end of this year to be prepared to meet the challenges of what shapes up as a demanding 2013,” Northrop spokesman Thomas Henson said in a statement. “This is a necessary step to address the affordability that will allow us to effectively compete in a very cost-conscious marketplace.”
BAE Systems announced plans to layoff 145 workers in Anniston, Ala. after shutting down its facility that upgrades military vehicles. BAE Systems is adding new jobs in another part of the state, however, with plans to hire new workers at its Mobile, Ala. port where it repairs commercial ships.
Lockheed Martin announced plans to eliminate 325 positions from its Global Training and Logistics Division in Orlando, Fla. The company hopes to reduce its workforce through voluntary layoffs, but if it doesn’t get enough employees to accept buyout offers involuntary layoffs will follow.
Who’s Acquiring:
Defense Contractors Trim the Fat, DLA Says ‘Make a Bid’
Lockheed Martin has sold Savi Technology to La Salle Capital Affiliates. Savi Technology provides logistics informatics solutions. The move comes as Lockheed looks to trim the fat and eliminate components which are unable to support its defense industry focus. Lockheed representatives noted that the sale reflected Savi’s needs to ‘grow in commercial sectors.’
Acquisitions by the Defense Logistics Agency may begin to feel a bit more like a sale on eBay – only in this case the winner is vying to provide the good. DLA recently announced that reverse auctions would now be its preference for any contracts exceeding $150,000. The process speeds up the acquisition process by allowing competitors to immediately see other bids, without revealing the actual company. It interjects a rare transparency into the acquisition process.
Who’s Moving:
Boeing’s Union Employees Won’t Budge
As Boeing looks to move the maintenance of two Air Force One 747s from Wichita, Kan. to San Antonio, they’re struggling to find personnel willing to relocate as well. Boeing announced plans to close its Wichita facility, moving engineering and operations functions to Oklahoma City and maintenance work to San Antonio. As a part of the move, all Machinist-union employees have been offered new jobs in San Antonio, but none have accepted the positions. Employees are declining to transfer to the non-union San Antonio facility because they’ll lose benefits. It’s an issue for Boeing, as maintenance of Air Force one requires employees to have specialized training, five years of experience, and specific security clearances.
