Northrop Grumman Cuts 500 Jobs
Southern California’s aerospace giant Northrop Grumman Corp. said it is cutting 500 jobs from its 23,000 employees in its aerospace division. The leading global security company that provides technical and other services to government and commercial customers worldwide said the job cuts are in anticipation of a slowdown in Pentagon spending.
In an article published by the L.A. Times, the company is said to have begun offering a voluntary buyout program Thursday, but said layoffs would ensue if fewer than 500 people agree to leave before October 28.
This is the second time in less than a year that employees in the aerospace division have experienced job losses.
The aerospace industry has been downsizing, reflecting new budget cuts in Washington. In January Boeing Co. announced it was cutting 900 jobs at its Long Beach plant. In addition, Lockheed Martin Corp. announced 1,500 job cuts across its aeronautics business division.
Meanwhile, Federal Reserve Chairman Ben Bernanke made hints that Congress may need to act to stimulate hiring and the economy. However, he made no proposals to boost economic growth.
Speaking at an annual economic conference in Jackson Hole, Wyoming Friday, Bernanke said that while record-low interest rates will promote economic growth over time, the weak economy requires further help in the short run.
He explained that he is fully aware of the challenges and concerns that we face in restoring economic and financial conditions conducive to healthy growth.
Bernanke went on to say “Economic policymakers face a range of difficult decisions, relating to both the short-run and long-run challenges we face.” He said “I have no doubt, however, that those challenges can be met, and that the fundamental strengths of our economy will ultimately reassert themselves. “The Federal Reserve will certainly do all that it can to help restore high rates of growth and employment in a context of price stability.”
Read Bernanke’s full speech transcript here.
In other news, the company also moved from its headquarters in Century City, CA., to Fall Church, VA., this week.