Tuesday, September 18, 2012

More evidence that we may already be going over the fiscal cliff

Northrop Grumman lays of 600 people.

Northrop Eliminates Nearly 600 Aerospace Jobs
[Los Angeles Times]

Facing what it calls “defense budget uncertainties and pressures on current and projected business,” Northrop Grumman Corp. has accepted buyouts from nearly 600 workers in its aerospace division, the Los Angeles Times reports.

Most of the affected jobs are in Southern California, including the company’s satellite facility in Redondo Beach.

“This is a necessary step to address the affordability that will allow us to effectively compete in a very cost-conscious marketplace,” Northrop spokesman Thomas Henson said in a statement.

This shows that companies are now starting to factor in the spending cuts into their own planning and budgets. Defense industry insiders say that up to 1 million jobs could be lost.

Economic data in the coming weeks likely to show some deterioration and it could be rapid.


Wekasus said...

Unfortunately this is bad for the workers. At the same time it may suggest a structural re-alignment of labor away from military industries. Naturally this could reduce the power of the military over the political system....

mike norman said...

Call me a cynic, but I believe Congress will find ways to avoid deep cuts in military spending, by cutting from social programs like food stamps, education, etc. That means military keynesianism will remain alive and well.