Northrop Grumman to Cut 500 Jobs

Northrop Grumman will cut up to 500 jobs in its aerospace division, KTLA reported Thursday.

The company will try to reduce positions through voluntary layoffs, which include severance packages; however, it said that involuntary layoffs may be necessary, KTLA reported.

"This action is being taken because of defense budget uncertainties and pressures on current and projected business," Northrop Grumman spokesman Jim Hart said in a statement to the media. "We must adjust our budgets by the end of this year to be prepared to meet the challenges of what shapes up as a demanding 2012. This is a necessary step to address the affordability that will allow us to effectively compete in a very cost-conscious marketplace."

Employees who wish to take advantage of the severance package, which includes a lump-sum payment and company-subsidized health insurance benefits, must volunteer by Sept. 15, Hart said. The company will respond to the applications by the end of that month, and employees with approved applications will report to work for the final time on Oct. 28.

Hart also said the company has about 350 aerospace job openings in Southern California; however, the "openings are mostly for positions funded by ongoing contracts."

In a statement, Rep. Janice Hahn said she was "extremely disappointed" to hear about the planned layoffs, and she called the news "a blow ... to the entire South Bay community."

"This is terrible news for these dedicated workers and their families," she wrote in a news release. "Each one of these high-skill workers is now someone who can't pay his mortgage. That's someone who suddenly can't pay for her kids to go to college ... I hope that Northrop Grumman will recognize the long-term value of these workers and reverse its decision."

About 13,000 Northrop Grumman employees work in the South Bay.