GDIT to close office, lay off dozens
By
Ross Wilkers
General Dynamics' IT services division has filed a notice in accordance with the so-called WARN Act that it is closing down an office and laying off nearly 100 staffers.
General Dynamics’ IT services division will close an office in Alexandria, Va. and lay off 92 people in a move to take effect Dec. 18.
The business disclosed the layoffs in a Worker Adjustment and Retraining Notification Act notice filed Oct. 16 with the state of Virginia. Enacted in 1988, the WARN Act requires most employers with 100 or more employees to provide notification of plant closings and mass layoffs of employees at least 60 calendar days in advance.
WARN Act layoffs became a topic of conversation for defense industry leaders in late 2012 as uncertainty over sequestration budget cuts loomed over the market. Defense executives told political leaders at the time they would warn workers of layoffs without guidance on how the mandatory cuts would fall.
This move comes amid a first half slump by 6.4 percent for General Dynamics in its information systems and technology group, which comprises of the IT services division and a communication product business. The contractor blamed the decline primarily on sluggish procurement activity from a slow pace of political appointments from the Trump administration during the transition.
That led General Dynamics to revise its full-year sales guidance for IS&T to flat from the previous year. The segment posted $9.2 billion in revenue last year.
General Dynamics is scheduled to report third quarter financial results Oct. 25.
The defense contractor has made a series of changes to the IT services division’s leadership in recent months also. Amy Gilliland became president in September and Bernie Guerry was promoted to chief operating officer shortly thereafter.