Defense Contractors Eye Cuts to Jobs, Plants
May 17, 2012
Defense contractors already are preparing for the layoffs and plant closures that will occur if Congress fails to reach a deal on the federal deficit this year, triggering $600 billion in automatic Pentagon spending cuts.
"We are running towards a cliff, all telling each other like lemmings that somehow this isn't going to happen," said Marion C. Blakey, president and CEO of the Aerospace Industries Association (AIA). "But the cliff is coming up."
The looming threat of the automatic cuts is causing defense and aerospace companies to make legally required stock market disclosures about possible lost earnings and to consider notifications to workers and suppliers about layoffs and contract cancelations, said AIA Vice President Fred Downey.