800 McDonnell Workers Will Lose Their Jobs

McDonnell-Douglas Helicopter Co. said Wednesday that it will lay off 800 workers in late February because of cutbacks in defense spending and production of the U.S. Army’s Apache attack helicopter.

The company said the layoffs include about 400 of the 5,900 workers at its Mesa plant and another 400 at its California Manufacturing Center in Culver City. The California plant has 1,650 employees at present. The layoffs are effective Feb. 23.

The company said production of the Apache helicopters, currently at the rate of 10 aircraft a month, will be reduced to six per month in June, with final Apache deliveries to the Army scheduled for mid-1993.

President William P. Brown said that, while McDonnell Douglas is pursuing opportunities for international sales of Apache helicopters, “In the meantime, we must reduce our work force to meet the reality of our delivery schedule with the U.S. Army.”

Brown said that adding to the need for reductions in spending is a recently announced $137-million writeoff on helicopter programs attributed to re-estimated material costs incurred over the life of several government contracts.

In addition to the layoffs, Brown said the company will reduce employee travel, participation in industry trade shows, replacement of non-critical equipment and other discretionary spending. It also has delayed plans to expand its light helicopter facilities.

McDonnell Douglas had planned to begin in January an expansion of its light helicopter facilities to accommodate production of its new MDX and MC 520N-530N helicopters. That plan has been put on hold.

“We will need the facility when full MDX production begins in 1993,” Brown said. “Until that time, existing facilities will be used for these programs.”