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Northrop Grumman announced a reduction in force of about 380 salaried employees at its Newport News, Va., shipbuilding facility, effective November 12.
"This is a necessary step to improve efficiency across the organization," said Matt Mulherin, vice president and general manager of Northrop Grumman Shipbuilding-Newport News. "While this is a very difficult decision, it is a critical and necessary step in order to control costs, effectively manage overhead, improve efficiency and lower the acquisition costs of our products to better secure the future of our shipyard and the affordability of the ships we build and overhaul for the U.S. Navy."
The announcement marks the first reduction Newport News has experienced in more than a decade. This reduction impacts salaried workers only and is driven, in part, by the completion of major milestones on existing contracts. The largest example is the near completion of the Gerald R. Ford aircraft carrier design.
"We regret that we cannot always prevent reductions, but we will continue to work to keep them to a minimum," Mulherin said. "We understand the impact this has, not just to our employees and their families, but also to our communities."
All impacted employees will receive information on eligibility for severance benefits and other career and other transition services to assist them in finding employment. Of the approximately 380 affected employees, more than 100 have been identified as having prior trades experience and have been offered hourly positions, such as welders and electricians, for example.
Northrop Grumman Corporation is a leading global security company whose 120,000 employees provide innovative systems, products and solutions in aerospace, electronics, information systems, shipbuilding and technical services to government and commercial customers worldwide.