Business & Tech

Northrop Grumman Cutting 500 Jobs

The job cuts will come through a combination of voluntary and—if necessary—involuntary layoffs.

Northrop Grumman Corp., the defense contractor with an office in Rancho Bernardo, will cut 500 workers in its Aerospace Systems sector through a combination of voluntary and involuntary layoffs, it was announced Thursday.

“This action is being taken because of defense budget uncertainties and pressures on current and projected business,” the company said in a statement. “We must adjust our budgets by the end of this year to be prepared to meet the challenges of what shapes up as a demanding 2012.”

Just how many positions will be cut in RB is unclear, as the company awaits responses to its voluntary layoff program. Employees will have until Sept. 15 to apply to be part of the program, which will provide a lump sum severance payment and extended company-subsidized medical insurance benefits. The amount of the severance and length of medical coverage will vary according to the employee’s salary and years of service, said Jim Hart, a spokesman for Northrop Grumman.

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The Redondo Beach-based Aerospace Systems sector employs nearly 23,000 people, with 18,000 in California. The Rancho Bernardo office hosts about 2,200 employees, with many working in programs funded by existing contracts such as for the Global Hawk unmanned aircraft systems for the U.S. Air Force. The largest facilities are in Redondo Beach and El Segundo in the Los Angeles area, Hart said.

In the statement, the company said the cuts are needed to “address the affordability that will allow us to effectively compete in a very cost-conscious marketplace.” Northrop said it hopes to cut as many positions as possible through the voluntary program.

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