Rockwell Worker Shuffle Aims to Save $100 Million

In a move designed to save $100 million, Rockwell International Corp. is shifting around employees to make better use of its plants in Southern California.

Rockwell said that by the end of next year, it will move 1,300 employees from its North American Aircraft division in El Segundo to underused buildings at the diversified technology company’s Seal Beach headquarters.

Rockwell also plans to shift 550 workers at its Space Systems division, who are now in Seal Beach, back to the division headquarters in Downey, where Rockwell built the space shuttle fleet.

The moves will increase Rockwell’s Seal Beach employment to 2,650, from about 1,900 now. Downey will have 4,600 Rockwell workers. By the end of next year, Rockwell will have moved virtually all of its work force from El Segundo. Spokesman Bill Blanning said a “handful” will remain to operate a wind tunnel, or engineering test center, which will not be moved.

No layoffs are expected to result from the series of moves, said William Mellon, a spokesman for Rockwell.

The consolidations are expected to reduce Rockwell’s operating costs by about $100 million over five years, primarily by disposing of its excess properties. Rockwell has juggled its office and factory space for the last six years, cutting its total property by 24% since 1987, to 11.4 million square feet today. After the latest consolidation, the amount of building space held will have been reduced to 67% of the 1987 level.

Since the National Aeronautics and Space Administration funds the Downey division’s programs, the consolidation there is expected to save NASA as much as $30 million in the next five years.

Rockwell has 77,500 employees overall, down from 121,000 in 1986 during the defense boom. The North American Aircraft division has shrunk drastically since it completed a fleet of 100 B-1B bombers for the Air Force in 1988.