GD, Northrop Announce Job Cuts
Two major government contractors, General Dynamics and Northrop Grumman, announced layoffs today.
The cuts at Falls Church-based GD are coming from its Gulfstream aircraft unit, as fewer corporations are willing or able to shell out money for a private plane. The company said demand for large-cabin and green aircraft demand has dropped, so it is cutting its deliveries from a projected 94 to 73 in 2009. It's also dropping its production of mid-size aircraft from a projected 30 to 24. With those cuts come reductions in personnel - 1,200 jobs will be eliminated, including about 550 contractors. While the company is based in the Washington area, the planes are made in Savannah, Ga.; Appleton, Wis.; Brunswick, Ga.; Long Beach, Calif.; and Dallas, the Associated Press reported.
"Despite the current challenges, we continue to believe that Gulfstream's backlog provides a solid foundation for the business in this tough market environment," said GD chief executive Nicholas D. Chabraja.
It cut its earnings guidance for 2009 to $6 to $6.10 a share from a previously stated $6.70 to $6.75 a share.
Separately, Los Angeles-based Northrop said it is laying off 750 workers as it consolidates administrative staffs. Spokesman Dan McClain told the AP that more jobs would probably be added and that the unit where the jobs are being cut has more than 850 vacancies in engineering and manufacturing.
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