SAIC cuts workforce by 700
In an effort to remain competitive in an increasingly challenging market, SAIC CEO John Jumper announced the lay offs of 700 people.
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.