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Hughes Aircraft Says It May Cut Up to 3,000 Jobs in ’91

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TIMES STAFF WRITER

Hughes Aircraft could eliminate as many as 3,000 jobs nationwide during 1991, as defense programs continue to fall under increasing budget pressure, the company said Friday.

The estimated losses include 1,200 jobs that Hughes has recently announced will be eliminated at its Fullerton, El Segundo and Tucson operations. But an additional 800 to 1,800 jobs could be lost, depending on future business conditions, company spokesman Richard Dore said.

Dore said the firm has no specific plans to eliminate the additional jobs, but top executives have been told to be prepared for further cutbacks later this year. Hughes eliminated more than 9,000 jobs during 1989 and employment was relatively flat last year.

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The firm has announced layoffs of 400 workers at its ground systems group in Fullerton, 400 at radar systems group in El Segundo and 400 at its missile systems group in Tucson.

Hughes Chairman Malcolm Currie acknowledged the potential for large layoffs in his recent “state of the company” speech to managers.

“Because times ahead are uncertain, some further reductions may be necessary,” Currie said. “Hopefully, they will be modest. My best guess is a possible total reduction of a few thousand positions over the next year or so. But this is only a guess at this time.”

Currie also observed that the defense industry “is in somewhat of a shambles,” due to high debt and uncertainty.

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