Northrop Grumman to lay off 380 workers

NEW YORK (CNNMoney.com) -- Northrop Grumman announced Friday that it will lay off 380 workers at its sprawling shipyard in Newport News, Va.

Northrop Grumman (NOC, Fortune 500) said this is its first staff reduction in a decade. Only salaried workers are being laid off, the company said.

The reduction is "driven, in part, by the completion of major milestones on existing contracts," including the "near completion" of the Gerald R. Ford aircraft carrier design, announced the California-based company.

Northrop Grumman said it will provide employees with information on eligibility for severance benefits and "transition services" to help them find new jobs. The company noted that 100 of the workers are skilled in certain trades, like welding and electrician work.

"While this is a very difficult decision, it is a critical and necessary step in order to control costs, effectively manage overhead, improve efficiency and lower the acquisition costs of our products to better secure the future of our shipyard and the affordability of our ships we build and overhaul for the U.S. Navy," said Matt Mulherin, vice president and general manager of Northrop Grumman's shipbuilding division in Newport News.

Northrop Grumman Shipbuilding describes itself as the largest shipbuilder in America and has been building ships for the U.S. Navy for more than a century. Its Newport News shipyard covers 55 acres along two miles of waterfront.

Just two days before, on Wednesday, Northrop Grumman Corp. announced that it had been awarded a $189.2 million contract by the U.S. Navy "to continue the engineering and design effort for the nation's newest nuclear-powered aircraft carrier, USS Gerald R. Ford."

The company said the contract pays for additional design, planning, analysis and "system integration" for the carrier.