General Dynamics unit, others issue layoff notices, blame U.S. budget cuts [View all]

http://www.reuters.com/article/2013/03/05/us-usa-fiscal-layoffs-idUSBRE92400B20130305



General Dynamics unit, others issue layoff notices, blame U.S. budget cuts
By Adam Kerlin
Mon Mar 4, 2013 7:06pm EST

(Reuters) - General Dynamics (GD.N) 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 closings.

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.