By Ann Roosevelt
Boeing [BA] began issuing advance layoff notices Friday to employees involved in the Army’s Future Combat System (FCS), one of the repercussions from the restructure of part of the program and cancellation of the manned ground system portion of the program.
“Due to the decision by the Pentagon directing the U.S. Army to restructure the FCS program, as well as related funding reductions anticipated in fiscal year 2010, Boeing and its partner SAIC [SAI] will be reducing their combined work force by approximately 30 percent,” the company said in a statement.
In April, Defense Secretary Robert Gates made public his decision to terminate the family of manned ground vehicles in the FCS program, and to restructure and accelerate the FCS spin-outs and networking capability. Both moves were included in the fiscal year 2010 budget request. The budget also calls on the Army to reexamine its modernization effort and plan for a new ground combat vehicle. The Army has begun this work.
The two companies have managed the FCS program for the Army as Lead System Integrator since their selection in March 2002 (Defense Daily, March 8, 2002).
“Boeing will begin issuing 60-day advance layoff notices to its employees [Friday], July 17, at several sites nationwide,” the statement said. Approximately 70 Boeing employees received notices July 17. More notices are expected on July 31.
“We [Boeing and SAIC] have approximately 2,000 people working on FCS all around the country,” Matthew Billingsley, a Boeing spokesman, said.
The expected layoffs affect only Boeing and SAIC, Billingsley said, not the FCS program subcontractors.
“Boeing and SAIC are committed to preserving as many jobs as possible for these valued, highly skilled employees and the companies are taking aggressive steps to lessen the impact of the funding reductions, the statement said. The companies will make every effort to redeploy FCS personnel to other programs and reassess contract labor requirements. Additionally, the companies will work with those affected employees to help them through this transition by offering career services and other assistance.
The two companies reiterated their commitment to working with the Army to implement the required FCS program changes in “a timely and efficient fashion,” the statement said.
Earlier last week, Boeing announced some 250 layoffs related to funding cuts in its Missile Defense programs. Layoff notices for these personnel were issued July 17 as well.