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Updated: NASSCO Could Layoff 730 Due to DoD Budget Cuts

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Two Oliver Hazard Perry-class (FFG-7) frigates undergo maintenance at NASSCO's San Diego shipyard. NASSCO Photo

Two Oliver Hazard Perry-class (FFG-7) frigates undergo maintenance at NASSCO’s San Diego shipyard. NASSCO Photo

This story was updated from a previous version to include a statement from NASSCO. 

Shipbuilder General Dynamics NASSCO could lay off as many as 730 at its San Diego, Calif. shipyard and maintenance facility in Mayport, Fla. by late April due to pending Department of Defense budget cuts, read a NASSCO statement provided to USNI News on Thursday.

“These actions are the direct result of information recently furnished by the Navy regarding the possible cancellation or delay of maintenance and repair work,” the statement said.
“The final number of positions affected will be determined when the Navy finalizes its plans for cancellation or delay of maintenance and repair work. Federal and state law requires that NASSCO inform employees of these potential actions now.”

The mix would be 375 full time workers and 290 subcontractors at the San Diego yard and 65 in Mayport.


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The lay offs can be tied to the U.S. Navy’s $9 billion shortfall combining Friday’s sequestration budget cuts and a year-long Continuing Resolution. If the Navy faces both restrictions, it has said it would eliminate Fiscal Year 2013 third and fourth quarter ship depot maintenance availabilities. 

NASSCO produces primarily auxiliary ships for the Navy, including 14 Lewis and Clark-class dry cargo and ammunition ships (T-AKE) and the under-construction Mobile Landing Platform. Unlike the other “Big Six” naval shipbuilders, NASSCO builds commercial ships as well.

NASSCO’s news follows the Feb. 19 announcement that nearby BAE Systems’ yard in San Diego could lose around 1,300 employees due to the same cuts.