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Northrop to cut 1,100 jobs
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January 15, 1997: 3:50 p.m. ET
Defense giant closing four plants, taking $90 million 4Q charge
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LOS ANGELES (CNNfn) - Northrop Grumman Corp. said Wednesday it will close four plants and cut about 1,100 workers as part of a restructuring effort.
The defense giant also said it would take a charge of $90 million in the fourth quarter for the moves, which are meant to streamline operations and enhance the companies competitive position.
While Northrop will lay off about 1,100 workers, newly created jobs at plants in Texas, Georgia, Illinois and Pennsylvania will reduce the net number of jobs lost to 755, the company said in a statement.
"We regret that these actions will result in the loss of jobs, but they are necessary if we are to meet the affordability demands of our customers and win new business," Chairman Kent Kresa said.
The majority of the cuts will be made in California, New York and Florida. The plants to be closed are in Hawthorne, Calif., Great River on Long Island, N.Y., Stuart, Fla., and Perry, Ga.
The $90 million charge includes $60 million for closing the plants and $30 million related to the job cuts and other one-time costs.
Los Angeles-based Northrop, the nation's fifth largest defense contractor, employs 46,600 people.
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