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


  • POWER TRAINING: How to engage your customers

    Don't miss our Aug. 2 Washington Technology Power Training session on Mastering Stakeholder Engagement, where you'll learned the critical skills you need to more fully connect with your customers and win more business. Read More


    In our latest Project 38 Podcast, editor Nick Wakeman interviews Tom Romeo, the leader of Maximus Federal about how it has zoomed up the 2019 Top 100. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.