Big 3 defense contractors feel axe of 1,000 cuts

Layoffs caused by sweeping government defense cuts

Nearly 1,000 workers throughout the Washington, D.C., region will be let go by large defense contractors by the end of July, including those who already were laid off in April, reports the Washington Examiner.

The reason for the layoffs is the government’s sweeping five-year, $150 billion in defense cuts announced in January, the newspaper said.

The companies affected include General Dynamics' unit in Woodbridge, Va., which will cut 112 jobs; Northrop Grumman Corp.'s Baltimore-area offices, with 200 jobs cut and 600 voluntary buyouts; and Lockheed Martin Corp.'s Alexandria, Va., location, which is cutting 45 jobs. As the Baltimore Sun reported recently, Northrop Grumman had to opt for cuts because the company didn't get enough employees to accept a voluntary buyout.

The downturn has been on the horizon for a while this year. In March, we surveyed readers, who expressed concerns related to the chaos created by the shutdown threat, which wasn't resolved until mid-April. According to our poll, 28 percent of respondents expected layoffs if the government shut down. As it turns out, layoffs have become inevitable for some companies.

Although the government avoided a potentially crippling shutdown, the damage was already done. "After this, I don't think there will be a 'business as usual' for a while," Robert Guerra, partner at consulting firm Guerra Kiviat, told Washington Technology in April. "This entire situation kind of makes the idea that there is security in working for the government no longer a factor for quite a while."

The belt-tightening at the Defense Department is affecting companies outside the Washington, D.C., metropolitan area, too. Raytheon Co. intends to lay off about 160 employees at the company's facility in Goleta, Calif., which is another hot spot for defense integrator operations, writes the Pacific Coast Business Times' Stephen Nellis. Teledyne Technologies Inc. and United Technologies Corp. also have units based in Ventura, Santa Barbara and San Luis Obispo counties in California.

Those companies form a who's who of the Washington Technology Top 100 list of government contractors. Lockeed Martin ranks No. 1, Northrop Grumman No. 2, Raytheon No. 4, General Dynamics No. 6 and United Technologies No. 21.

Reader Comments

Wed, May 18, 2011 MJD Arlington VA

Your article said,"According to our poll, 28 percent of respondents expected layoffs if the government shut down... Although the government avoided a potentially crippling shutdown, the damage was already done." Are you saying that if the Gov't hadn't threaten to shut down that these folks would not have been laid off???

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close
SEARCH
 Top 100 Slideshow
contracts DB

Trending

  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Read More

  • Is SBA MIA on contractor fraud? Nick Wakeman

    Editor Nick Wakeman explores the puzzle of why SBA has been so silent on the latest contractor fraud scandal when it has been so quick to act in other cases. Read More

Webcasts