P.M. BRIEFING : McDonnell Douglas Plans Layoff
McDonnell Douglas Helicopter Co. will lay off more than 10% of its employees by Feb. 23 because of reduced defense spending by the government, company President William P. Brown announced today.
The move will involve about 400 workers each at the company’s base plant in Mesa, Ariz., and at its California Manufacturing Center in Culver City. The company employs 5,900 in Mesa and 1,650 in Culver City.
“We must reduce our work force to meet the reality of our delivery schedule with the U.S. Army,” Brown said in a prepared statement from Mesa.
The Mesa plant has been producing Apache helicopters for the Army at the rate of 10 per month. Brown said that number would be reduced to six a month in June under a contract that ends in mid-1993.
He said the company still has good prospects of international sales of Apaches.
The other step in the company’s retrenchment is elimination or delay of discretionary spending, Brown said.
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