General Dynamics to Cut Shipyard Force

Associated Press

General Dynamics said as many as 3,100 employees, or more than half of the present work force, will be laid off from its shipyard because it has no more contracts to build ships.

The yard’s 5,300 workers were notified of the impending layoffs in letters to employees Monday.

“Even if we were able to win a major new contract today, it would be many months before it would generate actual production work in the yard,” Gary S. Grimes, general manager, said in the letter.

The shipyard said it will lay off 800 workers by June, an additional 1,000 by October and 1,300 more by December. That would put the work force at about 2,200 by next year.


The layoffs will affect salaried and hourly employees and nearly all departments, a spokeswoman said. She said design engineers, whose work is needed for future contracts, will be untouched.

Top executives of General Dynamics are under investigation by government agencies looking into possible improper billing, misuse of government money, falsification of financial records and stock manipulation.

The inspector general at the Pentagon said he will recommend that no new contracts be awarded to General Dynamics so long as two top executives remain with the company.

General Dynamics now is finishing work on five supply vessels for combat ships for the Navy.


“With delivery of the fifth and last . . . ship a year away, and with no additional contracts in hand, the employment outlook at Quincy Shipbuilding is not encouraging,” Grimes wrote employees.