| March 4,
March 4, General Dynamics NASSCO, a
primary constructor of ships for the U.S. Navy, warned about
1,040 employees on Monday of indefinite layoffs that may come in
late April due to uncertainty created by the automatic U.S.
budget cuts that took effect last week.
The warnings come as military contractors weigh
uncertainties over scheduled maintenance and repair work that
may be put on hold as the federal government makes $85 billion
in spending cuts.
The U.S. Worker Adjustment and Retraining Notification Act
(WARN) requires most companies with 100 or more employees to
give notification 60 days in advance of mass layoffs or plant
Military contractors appear to be the hardest hit by the
cuts because a large part the reductions are expected to come
from Defense Department spending.
Based in San Diego, NASSCO is a wholly-owned subsidiary of
General Dynamics and the largest full-service shipyard on the
It has built 63 ships for the U.S. Navy since the 1960s. The
company's three shipyards are in Mayport, Florida, near
Jacksonville; Norfolk, Virginia; and San Diego - cities that
rely heavily on the military for jobs.
The company did not respond to requests for comment.
Among the 1,040 NASSCO workers who could be affected by
layoffs, 665 are in the Jacksonville area, according to WARN
notice databases, and 375 in San Diego.
NASSCO is at least the second company with strong ties to
Mayport to notify workers of possible layoffs because of the
Units of BAE Systems issued layoff notices last
week. Its ship repair division notified more than 100 employees
in the Jacksonville, Florida, area and 302 San Diego employees
that layoffs could be on the horizon, according to WARN notice
databases in Florida and California.
The company also issued layoff warnings to more than 1,300
employees at its San Diego ship facility and an undisclosed
number in Norfolk, Virginia, according to the databases.