BAE Systems announces San Diego shipyard layoffs

Posted at 10:28 AM, Jul 12, 2017
and last updated 2017-07-12 13:32:08-04

SAN DIEGO (KGTV)--Aerospace company BAE Systems announced Tuesday the possible layoff of one-fifth of its San Diego shipyard workforce in late summer. 

The company said approximately 300 jobs could be eliminated by September due to a decline in ship repair work following recent awards to other contractors and modifications to the Navy acquisition process that now require contractors to compete for work on a ship-by-ship basis.  

"Previously, ship repair work was bundled by ship class over several years. The change in acquisition strategy will provide the potential for greater fluctuation in the shipyard's workforce size as repair contracts are won or lost," the company said in a written statement. "We recognize that the workforce reduction will impact our dedicated employees and our shipyard team overall. We greatly appreciate the contribution and hard work of the employees who will be leaving our organization." 

Last November the U.S. Navy awarded a $192.7 million contract to BAE Systems for repair work on the USS Zumwalt and USS Michael Monsoor. 

Sandy Coronilla is a KGTV digital producer. Follow her @10NewsSandy