San Diego Business Journal

Shipbuilder Announces Up to 300 Layoffs

By Brad Graves Tuesday, July 11, 2017
   

BAE Systems said July 11 that it planned to lay off as many as 300 employees at its Barrio Logan shipyard. The positions could be eliminated in early September, the business said.

“The workforce reduction is in response to a decline in near-term ship repair work following recent awards to other contractors in San Diego, and modifications to the Navy acquisition process that require contractors to compete for work on a ship-by-ship basis,” the business said in a statement.

Previously, U.S. Navy ship repair work was bundled by ship class over several years. In other words, a single shipyard in the port of San Diego would handle all work on Arleigh Burke-class destroyers or Ticonderoga-class cruisers.

“The change in acquisition strategy will provide the potential for greater fluctuation in the shipyard’s workforce size as repair contracts are won or lost,” BAE’s statement said. “The workforce action provides the necessary agility to ensure BAE Systems remains in the best position to effectively support the Navy in performing its critical missions.

“We recognize that the workforce reduction will impact our dedicated employees and our shipyard team overall. We greatly appreciate the contribution and hard work of the employees who will be leaving our organization.”

The shipyard said it directly employs 1,570 people.

BAE Systems PLC is a diversified, publicly traded defense contractor based in the United Kingdom.