Northrop Grumman Offers Voluntary Layoffs

Northrop Grumman Corp. officials have asked employees at the company’s Aerospace Systems sector to participate in a voluntary “reduction-in-force program” to cut costs.

 

Employees across the sector are eligible for the voluntary layoffs, announced to workers after Labor Day.

 

“Because of defense budget uncertainties and pressures on current and projected business, we must reduce our costs by the end of this year to meet the challenges of what will be a demanding 2014,” Northrop officials responded to a reporter’s questions about the plan. “This is a necessary step to address the affordability that will allow us to remain cost-competitive.”

 

The company did not say how many positions it hopes to eliminate.

 

Military contractors have been under pressure to reduce costs to adjust to automatic, across-the-board government spending cuts, known as sequestration, the result of a congressional budget deal.

 

At Northrop, employees across the Aerospace Systems sector have until Sept. 22 to apply for the voluntary layoffs. The last day at work for those who participate in the program will be Oct. 24.