Rocketdyne to Layoff About 10 Percent of Workforce
Back in the day, a company I worked for launched what it called a “getting fit” initiative. Based on the sound of this elaborate bit of corporatese, you might think this was some effort to get its employees to spend less time hunched over keyboards in their cubicles and more time exercising. And, in a manner of speaking, you’d be right. The over compensated executives who had helped drive the company into a ditch in the first place decided to give 1,500 employees a lot more time to exercise by eliminating their jobs. At Christmas time.
It looks like over 500 employees of Aerojet Rocketdyne will be getting the same opportunity soon. The company has launched a “competitive improvement program….that preserves the company’s accelerated momentum and will leave the company “better positioned to deliver our innovative, high quality and reliable products at a lower cost to our customers.”
In other words, things aren’t going so well (SpaceX) and we need to eliminate jobs to help us keep up with the competition (SpaceX). More disruption of the space industry.
The full press release is below.
SACRAMENTO, Calif., March 9, 2015 – Aerojet Rocketdyne, a GenCorp (NYSE:GY) company, today announced that it has launched a continuous, multi-faceted competitive improvement program (CIP) aimed at reducing costs and increasing operational efficiency among its 14 sites that are located in 11 states across the country.
“Aerojet Rocketdyne has made a commitment to our customers and to the government to improve the affordability of our products – products vital to our nation’s defense and continued access to space,” said GenCorp and Aerojet Rocketdyne President and CEO Scott Seymour. “This competitive improvement program represents a fully-integrated, long-term business strategy that preserves the company’s accelerated momentum and assures our ability to continue driving the inherent growth and profitability of our business. As a result of this effort, we will be better positioned to deliver our innovative, high quality and reliable products at a lower cost to our customers.”
The CIP is composed of three major components: facilities optimization and footprint reduction; product affordability; and reduced administrative and overhead costs. Major activities of the CIP, including factory consolidation, lean manufacturing initiatives and the implementation of shared services, will span a four-year period. The companywide initiative is being undertaken after a comprehensive assessment of the company’s product portfolio to underpin Aerojet Rocketdyne’s technological and competitive leadership in its markets through continued research and development.
Once the initial activities of the CIP are fully implemented, the company expects to achieve annual cost savings of approximately $145 million by 2019. As a result of the CIP, the company anticipates an estimated 10 percent headcount reduction in its 5,000+ total employee population. “This is a very difficult decision and I recognize the impact on our dedicated colleagues that will be affected,” said Scott Seymour, President and CEO. The company revealed plans to reduce the footprint of its largest site in Sacramento, California, by consolidating office space at the 2.5 million square-foot facility and relocating certain manufacturing programs to sites which handle similar products and have like manufacturing capabilities. These actions will result in a reduction of 1,000,000 square feet.
“We believe that these actions are essential to improving both the near and long-term health and performance of our business, in the context of a highly competitive and resource-constrained market environment,” said Seymour. “Our CIP will continue to evaluate a broad range of options that could be further implemented to increase operational efficiency across all sites, achieve additional savings and improve our overall market competitiveness. Our decisions will be focused on moving us forward to solidify our leadership in the propulsion markets. In the end, the stability and growth of the company that results from this initiative will benefit our valued employees, customers and shareholders alike.”
Aerojet Rocketdyne is a world-recognized aerospace and defense leader providing propulsion and energetics to the space, missile defense and strategic systems, tactical systems and armaments areas, in support of domestic and international markets. GenCorp is a diversified company that provides innovative solutions that create value for its customers in the aerospace and defense, and real estate markets. Additional information about Aerojet Rocketdyne and GenCorp can be obtained by visiting the companies’ websites at www.Rocket.com and www.GenCorp.com.
28 responses to “Rocketdyne to Layoff About 10 Percent of Workforce”
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>we need to eliminate jobs to help us keep up with the competition (SpaceX).
Hey, didn’t SpaceX recently layoff 10% of their workforce too?
For spacex, I thought it was 5%.
However, theirs was just cleaning house of those that did not fit.
These other companies need to remove loads of management, but will probably remove engineers
Agree 100%. It would be great to see them lose a little weight around the middle.
Although, the press release does say “reduce administrative costs” – hopefully that’s manager-speak for “eliminate bureaucratic waste”.
If these guys are anything like ULA, they will simply drop 1-2 managers and lose 500+ engineers.
Or so they say.
well, yes, so they say.
However, they continue to hire massive numbers of ppl.
So, no, it should be obvious that they were simply cleaning house.
Look, there are plenty of ppl that get hired in large companies who do not fit what is needed/wanted. It does not mean that they are bad employees, just bad fits.
And to be fair, as one that has worked in a number of start-ups, I can tell you that the vast majority of ppl do NOT belong in this environment.
For the average White Collar American, they expect to work 40-50 with maybe a 60 or two. In a start-up, that is NEVER the case. You put in 50-60, with 70-100s sometimes needed. Basically, you devote your life to it.
In addition, there are plenty of engineers who do not belong in the industry. They did the job because dad did it, or they liked the money. But, they do not have the aptitude for it.
SpaceX is simply saying that they can not afford to have ppl like this.
Nothing personal and there is no reason for you to continue to bash SpaceX and make up things when it is not needed.
What Space X says is not necessarily the whole story.
No? So what is the whole story?
And what do you have that backs it up?
Windborne, I admire your loyalty to the Space X brand, but I will caution you that when the Space X/Elon Musk bubble bursts (and it will) you understand my point of view. Until that happens, it is fruitless for me to try and explain it.
In other words, you’ve got nothin’
Oh, I have plenty, but it’s a waste bandwidth to explain it to those who have selective hearing.
ah. so you’ve got nothin’ AND you suck at explaining things. gotcha.
Tell you what, if you want to pay me my going rate ($500.00 per hour) I would be happy to explain it to you. What do you say? And I do charge that rate for dumb looks too.
You clearly make a fortune so frequently posting on the internet lol
We all need our hobbies…
At least Mr. Lister has a professional background and motivation to be interested and engaged in a space related blog as this one here, you not as a hobbyist. In comparison, you are not able to turn your space related knowledge into income/money.
Oh, you’re right. free exchange of thoughts and opinions aren’t allowed. hobbies aren’t allowed. people with an interest in space aren’t allowed. you best get off this website, too.
No, but then again, you obviously have nothing intelligent to say.
I asked honestly for information, along with credible sources.
Yet, you have nothing.
All you can do is lead with ad hominems.
Calling the kettle black.
I pointed out that you had nothing intelligent to say in that course.
Nothing more.
You COULD have simply answered the question instead of attacking me and HD.
I really am curious as to what bubble you see in there and where you get your info.
Yes, you and Gaetano have the same belief/hope.
“when the Space X/Elon Musk bubble bursts”
It interests me. What “SpaceX bubble”? Why it would “burst”? And when?
My godness, windbourne, SpaceX is only a company and Musk not the Holy Ghost. The company’s objective is to earn money, and oh man that will be not your money! Nobody will connect you with that company and will give an anything that you support to full extent. We happy see the (not fully realized) advances made my SpaceX and its effects on industry, but you care too much about that specific company in my view. It is really necessary that alternatives arise.
Yes, if other companies are developing as fast as SpaceX …
But, on the other hand, someone’s got to start using the opportunities that have arisen as a result of actions SpaceX? So far, only the “Golden Spike” announced a project using Falcon Heavy for trips to the Moon. For example, the creation of Raptor, methane rocket engine that does not require maintenance between flights, makes it possible to carry out low-cost (up to ten thousand dollars) suborbital trips. It’s not interesting SpaceX, but other companies it can be very interesting.
Or so says the marketing department. A sales pitch is one thing; living up to the sales pitch is another.
and who is not living up to sales pitch?
sure, but rocketdyne and others are not about to go after FH. That is competition.
However, if OSC had a brain amongst them, they would put a focus on 2 things:
1) build their own solid motor lower/liquid upper rocket launcher that enables fast launches. Pre-build some and make it so that they can launch QUICKLY esp. when others can not. And make it launch from their island.
2) build a tug/fuel depot. If cygnus is going to be used for other items, it will need a real means to get around. In addition, it should work with Bigelow’s units. In doing that, they can turn a BA-330 into a real space taxi.
And the need to move items to the moon, mars, asteroid belts, etc is really needed.
IOW, this is how they make their own demands.
“competitive improvement program that preserves the company’s accelerated momentum and will leave the company better positioned to deliver our innovative, high quality and reliable products at a lower cost to our customers”
Bill Lumbergh could not have said it better himself.