Defense Layoffs, Government Shutdowns and Sharing the Burden – Recruiting Round-Up

Cleared Recruiting talent pool

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Trouble is brewing for LinkedIn. The company has denied hacking and spamming LinkedIn users’ contacts. However, a class action lawsuit was filed last week, charging LinkedIn with violations of state and federal law. Privacy and security is a key feature in creating a professional networking profile.

It is a sad day when a voted and agreed upon continuing resolution (CR) would be a welcome sight. Sadly, the sun may not rise to see a CR in place, but rather a government shutdown. If the shutdown stretches on for any length of time, contractors can still keep their doors open; however, without clients to report to or accounting offices to pay the bills, things start to get a bit more complicated.

Does increased scrutiny of the hiring guidelines for defense contractors really increase costs for defense companies? In the aftermath of the Navy Yard tragedy, some industry consultants warn that adjustments or changes to guidelines could escalate contract costs in a time of decreasing federal budgets.

Share the burden. That’s the message that Rep. Young is presenting to Secretary of Defense Chuck Hagel regarding a 20% reduction at MacDill Air Force Base in Tampa, Fl. Worst case scenario for MacDill, this would mean 1,200 jobs lost in the next five years. Given that the workforce for many government organizations is comprised of military, civilian, and contractor, this decision could certainly have an impact.

Who’s Acquiring

The planned acquisition is now complete for Accenture and ASM Research. ASM Research is now a wholly owned subsidiary of Accenture Federal Services Company. The acquisition increases AFS’ healthcare IT solutions within the Department of Defense and Veterans Affairs.

Who’s Firing

Boeing is planning on laying off 300 workers at its St Louis location starting in 2014. According to Boeing, the production completion for the C-17 will affect jobs for 650 suppliers in 44 states. Given the uncertainty of the sequestration situation, Boeing made the decision to end the C-17 production.

Cubic Corp, headquartered in San Diego, CA, has laid off an unidentified number of workers from its simulation unit in Orlando, FL. The Orlando operation employed over 350 people and was part of the training-simulation industry in central Florida. Layoffs are being blamed on the federal budget sequestration.

In Sealy, Texas, BAE Systems is planning to cut about 140 jobs in the next four months. The defense contractor cites the downturn in defense spending as the primary cause for the cuts.

Due to a funding cut, the Logistics Company, a Fort Bliss defense contractor, is set to layoff 66 trainers by the end of this month. The Logistics Company was a subcontractor to Alaskan-based Tatitleck Corp for the Fort Bliss contract.

Who’s Growing

Breyden Products, Inc is not planning to lay off workers. Instead, the Columbia City defense contractor is planning an expansion of its Whitley County headquarters. The 2.2 million investment will create approximately 23 additional jobs by 2016.

Arotech is looking to raise $6 billion through a public offering of new shares. Since August, the Ann Arbor-based defense contractor has landed $14.9 million in new contracts and product orders, in addition to option years being exercised on other contracts. Proceeds from the public offering could include acquisitions or other investments.

Jillian Hamilton has worked in a variety of Program Management roles for multiple Federal Government contractors. She has helped manage projects in training and IT. She received her Bachelors degree in Business with an emphasis in Marketing from Penn State University and her MBA from the University of Phoenix.