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Hughes layoffs look not to be the last for industry; industry experts say another 60,000 jobs could be lost.


Hughes Aircraft Hughes Aircraft Company was a major aerospace and defense company founded by Howard Hughes. The group was based near Ballona Creek, in Culver City, California, USA, on the Pacific Coast.

Hughes Aircraft was acquired by General Motors in 1985.
 Co.'s announcement last week that it will eliminate another 4,400 jobs in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region,  is not expected to be the last of the already devastating dev·as·tate  
tr.v. dev·as·tat·ed, dev·as·tat·ing, dev·as·tates
1. To lay waste; destroy.

2. To overwhelm; confound; stun: was devastated by the rude remark.
 industry losses in the area, according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 industry and economic experts.

They said another 60,000 aerospace/defense industry jobs could be lost in the state before the downsizing (1) Converting mainframe and mini-based systems to client/server LANs.

(2) To reduce equipment and associated costs by switching to a less-expensive system.

(jargon) downsizing
 is completed. A good chunk of those additional job losses -- at least a third -- could occur in the greater Los Angeles area The Greater Los Angeles Area, or the Southland, is the agglomeration of urbanized area around the city of Los Angeles, California, United States. There are two "official" definitions—the Los Angeles metropolitan area consisting only of the Los Angeles and Orange , they said.

Including the latest layoffs at Hughes, Southland aerospace/defense employment has now dropped to about 180,000 from a high of about 300,000 in the mid-to late-1980s.

Experts said they expect statewide aerospace/defense employment to drop from a high of close to 400,000 to less than 140,000 by the end of 1996.

The cuts have come as a result of a defense/aerospace industry downsizing brought on by a declining Department of Defense budget. The Pentagon cuts began with the break-up of the Eastern bloc During the Cold War, the term Eastern Bloc (or Soviet Bloc) was used to refer to the Soviet Union and its allies in Central and Eastern Europe (Bulgaria, Czechoslovakia, East Germany, Hungary, Poland, Romania, and—until the early 1960s—Albania).  and the Soviet Union in the late 1980s and early 1990s.

All the major aerospace/defense companies in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850.  County -- including such big companies as Lockheed Corp., Northrop Grumman Corp., Douglas Aircraft Co. and Litton Industries Inc. -- have reduced their work forces in recent years.

Last week's announcement by Hughes, which is also considered a major defense/aerospace contractor, was not the first made by the Los Angeles-based company.

In the mid-1980s, Hughes had worldwide employment of about 82,000. But that number has dwindled to about 5 1,000, excluding the latest round of layoffs. In California, Hughes employs about 34,000, most of whom work in Los Angeles and Orange counties.

In last week's announcement. the company said it will cut 4,400 jobs at its facilities in El Segundo and Fullerton over the next 16 months. Currently, about 6,800 people work at the company's Fullerton facility and another 7,800 in El Segundo.

Both facilities are involved in the production of radar systems, air-defense systems and air traffic control equipment.

Eventually, Hughes plans to phase out all its operations in Fullerton, with remaining employees being transferred to other company facilities.

Overall, the layoffs represent about 9 percent of Hughes' current companywide work force.

Exactly how many jobs will be eliminated at each of the two facilities will be determined at a later date, the company said.

C. Michael Armstrong C Michael Armstong (born 18 October, 1938, in Detroit, Michigan) is the former AT&T chairman and CEO, who tried to reestablish AT&T as an end-to-end carrier. Unfortunately, due to the dot.com bust and various other issues, he was forced to break the group up in 2001. , chairman of Hughes' parent company, said, "Today, the Department of Defense and our foreign customers are even more cost-driven, and Hughes must change to meet those new priorities. We must continue to maintain a competitive edge if we are to grow a business base that will help us ensure a viable company and thriving work force into the future."

Hughes, based in the Westchester section of Los Angeles, is a military electronics and commercial satellite company and a unit of GM Hughes Electronics Inc.

In 1993 GM Hughes Electronics, which is owned by General Motors Corp., had sales of $13.5 billion.
COPYRIGHT 1994 CBJ, L.P.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1994, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:Hughes Aircraft Co.
Author:Deady, Tim
Publication:Los Angeles Business Journal
Date:Sep 19, 1994
Words:507
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