COMPANIES

SAIC cuts workforce by 700

Company makes cuts to remain competitive, CEO says

Science Applications International Corp. has reduced its workforce by 700 people to remain competitive in a challenging market, according to a message from the company’s CEO, John Jumper.

In his letter, Jumper addressed the company’s need to prepare for its annual operating plan submission this month, which includes an estimate of forward pricing rates for government customers for the upcoming budget year, Jumper said.

The rates the company charges must be competitive, he added.

SAIC has already been evaluating how changes in processes, organization and function could increase efficiency; the actions taken from these efforts have helped the company, which saved more money than anticipated, minimizing the impact on its workforce, he said.

More changes are coming for the company, related to procurement, facilities, work-flow, organizational structure and other actions, including a reduction of 700 positions, Jumper said.

The layoffs impact line and functional staff across the ranks, limiting the impact on those delivering directly to the company’s customers.

As SAIC plans for its upcoming split into two companies, it will look for ways to increase efficiency that reduce the impact on its workforce, Jumper said.

"The decisions were not easily made," he said. "But we firmly believe that they are absolutely necessary in order for us to remain competitive."

The company will provide training, counseling and other support to the laid off employees.

About the Author

Mark Hoover is a staff writer with Washington Technology. You can contact him at mhoover@washingtontechnology.com, or connect with him on Twitter at @mhooverWT.

Reader Comments

Wed, Dec 5, 2012 Greg

I work for a defense contractor in VA, and we are expecting our company and many more will be laying off - contrary to President Obama's assurances to the contrary.

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
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

  • How Do You Support the Project Lifecycle?

    How do best-in-class project-based companies create and actively mature successful organizations? They find the right mix of people, processes and tools that enable them to effectively manage the project lifecycle. REGISTER for this webinar to hear how properly managing the cycle of capture, bid, accounting, execution, IPM and analysis will allow you to better manage your programs to stay on scope, schedule and budget. Learn More!

  • Sequestration, LPTA and the Top 100

    Join Washington Technology’s Editor-in-Chief Nick Wakeman as he analyzes the annual Top 100 list and reveals critical insights into how market trends have impacted its composition. You'll learn what movements of individual companies means and how the market overall is being impacted by the current budget environment, how the Top 100 rankings reflect the major trends in the market today and how the biggest companies in the market are adapting to today’s competitive environment. Learn More!