Cuts in Funds Force Hughes to Lay Off 300 : Reductions at El Segundo Could Start This Week
Hughes Aircraft said Tuesday that it would lay off 300 engineers and technicians at its Space and Communications Group in El Segundo, a result of funding cuts on government programs.
The group, which builds military and commercial communications satellites, employs 9,500 in El Segundo and 1,500 more at other locations.
Some of the layoffs are scheduled to begin as early as this week, but others will occur during the next 30 to 60 days, Hughes spokesman Donald M. O’Neal said.
O’Neal said Hughes did not anticipate further reductions, even through attrition, in its 9,500-person work force. Other Hughes units have been hit with sporadic layoffs during the past year, including some at the firm’s Ground Systems Group in Fullerton.
Hughes sent letters notifying employees of the pending layoffs Tuesday and took the initiative to announce the move at the same time. Such announcements, although standard in some industries, are rare in aerospace.
Despite the layoffs in its government satellite business, Hughes has a healthy two-year backlog of commercial spacecraft business. Work is under way on nine commercial satellites. In addition, the Navy ordered one satellite and took options on another eight last year.
The government business hit with a funding cut involves two classified military satellite programs whose schedules will be stretched out. Historically, secret military spacecraft represent about half of the group’s business.
The Ku-band radar and communications system for the National Aeronautics and Space Administration is also being slowed down. Support work for the space shuttle, under a subcontract from Rockwell International, is also affected.
Hughes is the second major producer of military spacecraft to be hit with funding cutbacks that resulted in layoffs. TRW was forced to lay off almost 1,000 employees last year after a classified spacecraft program was suddenly and unexpectedly canceled.
