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Mon, Dec 03, 2012

Northrop Grumman Plans Layoffs As Defense Budgets Cuts Loom

About 200 Positions In CA And UT To Be Cut In First Quarter Of Next Year

Citing the uncertainty of the defense budget in the coming years, Northrop Grumman said it plans to cut about 200 positions from its Woodland Hills, CA, and Salt Lake City, UT operations in the first quarter of next year.

The Los Angeles Times reports that the company has offered a voluntary separation program to all of its employees in the electronics division working in those two cities. There are about 1,300 people working at Woodland Hills, where advance avionics systems and sensor technologies are produced.

Gina Piellusch, a Northrop spokeswoman, called the move "regrettable, but unavoidable" in light of the billions of dollars that may be cut from the Pentagon budget over the next 10 years. She said the company hopes that the voluntary efforts will be enough to make the force reduction targets, but layoffs are certain if they do not.

The company accepted buyouts from nearly 600 employees in California in September. There are still some 27,000 NGC employees in the state.

Nearly $500 billion is expected to be cut from the defense budget over the next 10 years if sequestration occurs at the beginning of next year.

FMI: www.northropgrumman.com

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