BRADENTON, Fla. Mississippis largest private employer, Northrop Grumman Ship Systems in Pascagoula, plans to layoff 500 of its 12,000 workers by the end of the year, according to a company newsletter sent to employees this week.
The state and the ship builder in 2003 agreed in contract for the state to provide the company bond funding in return for Northrop Grummans investment of $313 million and the creation of up to 2,000 full-time jobs in Mississippi by December 2009.
The company designs and builds ships for the U.S. Navy, Coast Guard, and commercial companies at its facilities near the port at Pascagoula.
To date, Mississippi has appropriated $100 million for the company, Northrop Grumman reported in its quarterly report filed July 28 with the Securities and Exchange Commission.
As of June 30, 2005, management believes that all commitments have been met, and that all future commitments under these agreements will be met based on the most recent Ship Systems business plan, the company reported.
While Northrop Grumman officials had said previously that a reduction in its workforce was anticipated, the announcement of the layoffs comes as the Base Realignment and Closure Commission prepares to vote next week on proposals to realign and close bases around the country.
In Mississippi, the base closing recommendations would cost 1,688 jobs, including jobs lost at the U.S. Navy port in Pascagoula.
The state is also slated to lose Keesler Air Force Base and Medical Center in Biloxi, the 186th Air National Guard Refueling Wing in Meridian, and the human resources department at Stennis Space Center.
Members of the governor-appointed Mississippi Military Communities Council argued in regional meetings before BRAC last month that closing the Navy port at Pascagoula would endanger defense of oil and gas rigs in the Gulf, as well as a large refinery and operations at Northrop Grumman.
