Estimated Job Losses Set At 570 As Operations Move To Florida

Citing "declining defense budgets," Sikorsky announced that it would close its plant in Horseheads, NY, at the end of the year and move the factory's functions to its operation in West Palm Beach, FL. The move will reportedly cost 570 people their jobs.

The Hill reports that Sikorsky spokesman Paul Jackson said in a statement that “(f)aced with these difficult economic conditions, we must eliminate excess production capacity and increase operational efficiencies to remain competitive.” Sikorsky said that cuts in defense budgets and the weakness of the overall economy were the reasons they were shuttering the plant.

The plant is a 'Military Completions Center'. Several defense contractors are looking at the possibility of layoffs and plant closures as the military budget shrinks and sequestration looms on the horizon. The Pentagon has announced that it plans to reduce the services' budgets by $487 billion over the next 10 years.

If sequestration happens in January, another $500 billion could be slashed from military budgets. Last week, Northrop Grumman said it was idling nearly 600 aerospace workers, citing cuts in government spending.

FMI: www.sikorsky.com