Northrop to Trim 500 Jobs, 3 Facilities
Northrop Grumman Corp. said Monday that it will eliminate 500 jobs and shutter three facilities in Southern California as it consolidates after its acquisition of Litton Industries Inc. this year.
The job cuts in the company’s Navigation Systems Division represent 4.5% of Northrop’s California work force. Former Litton facilities in Agoura Hills, Northridge and the Santa Barbara County town of Goleta will be closed and their operations transferred to Litton’s former headquarters building in Woodland Hills by July 2002.
Affected employees will be mostly white-collar workers in administrative positions such as human resources, finance, marketing and other support tasks, according to Northrop spokesman Randy Belote. Analysts say the firings are part of an expected housecleaning after Northrop’s $3.8-billion acquisition of Litton in April.
“It makes sense to consolidate everything into a single facility . . . to lower their overhead,” said Paul Nisbet, aerospace analyst with JSA Research Inc. in Newport, R.I. “It’s an inevitable action that they have to take in order to remain competitive.”
Although the job cuts were expected, they spell more bad news for aerospace employment in Southern California. Boeing Co. said this month that it plans to slash 600 additional jobs at its Long Beach commercial plane facility, doubling the number of reductions announced earlier this year.
In the last year alone, Los Angeles County has lost 4,000 aerospace and high-tech jobs, according to figures from the Los Angeles County Economic Development Corp. The agency’s chief economist, Jack Kyser, said the only bright spot with the Northrop downsizing is that the Navigation Systems Division will remain in Southern California.
“Streamlining is the order of the day,” he said. “At least they’re not moving out of state.”
Northrop’s Belote said the layoffs and plant closings will start in September and be completed by next summer. The 160,000-square-foot Agoura Hills facility will be sold, and the leased facilities in Northridge and Goleta will be sublet. About 2,400 workers are employed at those three locations and the Woodland Hills facility.
Belote said fired employees will be provided severance packages and outplacement assistance, although he could not provide specifics.
The Navigation Systems Division makes navigation and guidance systems for aircraft and weapons. The division includes a facility in San Diego whose 300 employees will not be affected by the consolidation.
Century City-based Northrop employs 11,000 workers in California and 80,000 worldwide. Its stock rose $2.25 on Monday to $84.15 on the New York Stock Exchange. The company is competing with General Dynamics Corp. to purchase Newport News Shipbuilding Inc., the last independent military shipbuilder.
