GA Technologies Offers Retirement to Trim Staff
One month before its expected sale by parent Chevron Corp., and in an effort to trim its staff by 200 in anticipation of further cuts in federal funding of energy projects, GA Technologies has sent a “very generous” retirement offer to more than 25% of its 1,500-member work force, the company confirmed Tuesday.
GA Technologies, in a five-page memo delivered to employees last Friday, said that the eligible workers who number about 400 must decide by March 21 whether they want to accept the offer by the La Jolla-based, high-technology energy and defense systems company.
The memo, written by GA Technologies President Kerry Dance, said that the company expects a “continuing decline in energy development funding,” and anticipates “significant cutbacks in federally funded programs.”
Even without those funding cuts, Dance conceded, “we have been and currently are overstaffed.”
‘Least Painful Way’
“The purpose is to try to reduce our staff in the least painful way possible,” spokeswoman Nicki Hobson said. “The goal is to cut staff by 200 people and we’d like to balance it without laying people off.”
Salaries of remaining employees will be “directly linked to individual performance in meeting clearly defined objectives and contributing to the company’s financial success,” Dance’s memo said.
A performance evaluation system is being developed, the memo said.
Several retirement and early retirement packages have been offered, but all feature a lump sum payment of 160% of the worker’s accrued pension, officials said.
All of the money can be rolled over into an Individual Retirement Accounts or similar retirement instruments, so the workers will not “get hit all at once by taxes,” Hobson said.
The retirement offer is voluntary, officials said. However, layoffs may loom if 200 people do not accept the offer.
GA Technologies officials said that its sale to an unidentified buyer by parent Chevron Corp. is expected to be completed next month.
Two brothers from Denver--James Neal Blue and Linden Blue--are reportedly the prospective buyers, although company officials refuse to confirm or deny their identities.
Chevron bought GA Technologies in 1984 as part of its acquisition of Gulf Oil, GA Technologies’ former parent. Chevron has been trying to sell the La Jolla subsidiary ever since.
A proposed leveraged buy-out by executives of GA Technologies was rejected by Chevron.
