More job cuts for defense companies
By Karen Jacobs |
July 20, 2009, Monday
|
Print Edition
Print Edition
BIG defense firms could be poised to shed jobs as the Pentagon cuts traditional weapons spending, while smaller, niche companies may ramp up their hiring as the United States expands resources to protect ground troops and computer networks.
Industry leader Lockheed Martin Corp last week said it would cut 600 jobs, mainly in Owego, New York, as a result of the United States Defense Department's decision to terminate the VH-71 presidential helicopter program.
Aircraft maker Boeing Co said announced the Pentagon cuts would claim 1,000 jobs in its defense business, affecting staffing at various US work sites in missile defense and in the Army's Future Combat Systems modernization program, which is being opened to more competition.
Boeing, which has also been hit by the slump in commercial aerospace, declined to say whether the defense staff cuts were included in 10,000 jobs set to be pared company-wide this year.
Changes proposed
Congress is debating the Obama administration's fiscal 2010 defense budget request and has proposed changes, including adding back funding for some programs that the administration seeks to cut.
Despite the congressional bid, some industry experts are betting more job cuts will come as US defense budget growth slows.
"Job cuts are starting and job cuts will happen," said Alex Hamilton, senior managing director at Jesup & Lamont Securities. "The main driver for defense is the defense budget, and that's under pressure."
Paul Nisbet, an analyst with JSA Research, is expecting the fiscal 2011 budget to include more weapons cuts.
"I think we're going to continue to see net cuts in personnel because the defense dollar being devoted to weaponry is going to continue to decline," Nisbet said. He expects a pullback in US weapons spending to hurt defense company revenues and earnings after next year.
At the same time, shifting defense priorities could prove to be a boon for some manufacturers as the Pentagon looks to beef up protection for US ground soldiers.
Oshkosh Corp last week said it was hiring 300 to 500 workers in Wisconsin and calling back as many as 650 it had let go at a Pennsylvania facility as it looks to fill orders for armored trucks.
Industry leader Lockheed Martin Corp last week said it would cut 600 jobs, mainly in Owego, New York, as a result of the United States Defense Department's decision to terminate the VH-71 presidential helicopter program.
Aircraft maker Boeing Co said announced the Pentagon cuts would claim 1,000 jobs in its defense business, affecting staffing at various US work sites in missile defense and in the Army's Future Combat Systems modernization program, which is being opened to more competition.
Boeing, which has also been hit by the slump in commercial aerospace, declined to say whether the defense staff cuts were included in 10,000 jobs set to be pared company-wide this year.
Changes proposed
Congress is debating the Obama administration's fiscal 2010 defense budget request and has proposed changes, including adding back funding for some programs that the administration seeks to cut.
Despite the congressional bid, some industry experts are betting more job cuts will come as US defense budget growth slows.
"Job cuts are starting and job cuts will happen," said Alex Hamilton, senior managing director at Jesup & Lamont Securities. "The main driver for defense is the defense budget, and that's under pressure."
Paul Nisbet, an analyst with JSA Research, is expecting the fiscal 2011 budget to include more weapons cuts.
"I think we're going to continue to see net cuts in personnel because the defense dollar being devoted to weaponry is going to continue to decline," Nisbet said. He expects a pullback in US weapons spending to hurt defense company revenues and earnings after next year.
At the same time, shifting defense priorities could prove to be a boon for some manufacturers as the Pentagon looks to beef up protection for US ground soldiers.
Oshkosh Corp last week said it was hiring 300 to 500 workers in Wisconsin and calling back as many as 650 it had let go at a Pennsylvania facility as it looks to fill orders for armored trucks.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
