BAE Systems, Inc., is the U.S. subsidiary of BAE Systems plc (OTCMKTS:BAESY, LON:BA), an aerospace and defense company headquartered in London, U.K. The company filed a Worker Adjustment and Retraining Notification (WARN) notice regarding mass layoffs in Virginia on January 29, 2018. The BAE Systems layoffs in 2018 will be effective on March 20, 2018, and will impact around 141 employees.
BAE Systems plc operates globally. It is one of the largest defense companies in the world and delivers a range of products and services for air, land, and naval forces.
BAE Systems, Inc. is headquartered in Arlington, Virginia. It has approximately 32,000 employees in the U.S., U.K., Sweden, and Israel. It is involved in support and services related to defense, cybersecurity and intelligence, and civil systems. It also manufactures electronic systems, specialized security, and protection products. It provides service support with armored combat vehicles, artillery systems, and munitions.
Earlier BAE Systems Layoffs in Virginia
BAE Systems laid off around 130 employees on June 2, 2017, in its Norfolk, Virginia shipyard as part of the planned workforce reduction of 300 by the end of June. These were part of a range of layoffs which took place across the region’s shipyards and subcontractors.
The defense budget delayed the Navy’s ship repair contracts, which could have been granted to BAE Systems. As a result, it decided to cut jobs. The layoffs were first announced in April 2017.
As per a statement from President and CEO Tom Epley, 55 employees were laid off at Norfolk-based Marine Hydraulics International Inc. The work on three ships was scheduled to start in April, but was postponed to June-July, and then to mid-August through early September. The three ships were two destroyers—”Mason” and “Nitze”—and a dock landing ship, “Whidbey Island.”
In response to this situation, the Naval Sea Systems Command issued an emailed statement:
“As previously stated, the Navy is committed to the workforce in Norfolk and is willing to accelerate the scheduled start dates of the Mason, Whidbey Island, and Nitze availabilities once contracts are awarded. Proposals for all three ships have been received and the Navy is working to accelerate awarding contracts by up to two weeks.”
Bill Crow, president of the Virginia Ship Repair Association, said, “Industry is anxiously awaiting the contract awards to be announced.”
The BAE Systems layoffs in 2018, which will come into force in March, are just another addition to the U.S. layoffs that are trending these days. The defense and aerospace sector has also joined the layoff chain.
“Warn Notice for BAE Systems, Inc.,” Virginia Employment Commission, last accessed February 6, 2018.
“What We Do,” BAE Systems, last accessed February 6, 2018.
“BAE Systems lays off 130 workers,” WAVY-TV, June 2, 2017.
“Layoffs continue as BAE Systems lets go of another 130 workers,” The Virginian-Pilot, June 2, 2017.