Northrop to Cut 300 Management Jobs in Its Aircraft-Parts Business
Northrop Grumman Corp. said it will cut about 300 management jobs in a reorganization of its aircraft-parts business as one of its biggest customers makes fewer airplanes.
The latest job cuts are in addition to 3,700 that Los Angeles-based Northrop plans to eliminate out of 10,000 in its commercial aircraft unit. It took pretax charges of $125 million against its 1998 earnings, mostly because of the 747 cutbacks. The new cuts will not force any further charges, spokesman Jim Taft said.
Northrop makes the fuselage for the 747 jetliner and parts for most other Boeing Co. planes. Seattle-based Boeing is slashing 747 production amid weakening demand in Asia and other parts of the world.
Northrop reduced the number of top-level posts in the parts division and named Tom Risley vice president and integrated product team leader for all Boeing commercial programs. Risley had been vice president and product team leader for the company’s empennage programs, which make aircraft tail surfaces.
“This restructuring will improve our near-term performance, reduce costs and enhance our competitive position for future growth,” said Paul Coco, vice president of the parts division, known within the company as Aerostructures.
The company expects no charges stemming from the layoffs, which will occur at various sites across the nation, a spokesman said.
Northrop’s shares fell $3.31 to close at $59 in New York Stock Exchange trading.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
