Defense giant Northrop Grumman Corp. is closing a site in Dominguez Hills and moving its operations to other locations, citing the need to lower costs because of government budget pressures.
The Dominguez Hills information systems sector facility – where the Falls Church, Va., aerospace and defense contractor company employs 768 people – provides information technology services for military, intelligence, commercial and state and local customers.
Those services and jobs will be sent to other Northrop facilities beginning this year as part of a plant consolidation plan.
“Given the current budget environment, it is imperative that we act to enhance future performance, innovation and affordability for our customers,” Wes Bush, chief executive, said in a statement.
The announcement comes just days after the deadline passed for Congress and the Obama administration to replace automatic government spending cuts known as sequestration. For defense spending, the cuts amount to about $46 billion over the next seven months. Military spending is also decreasing because of the wind-down of the United States’ wars in Iraq and Afghanistan.
Congresswoman Janice Hahn, D-San Pedro, said the closing of the Northrop location is “unmistakably bad news.”
“As we wind down a decade at war, we need to help transition our defense industry towards civilian applications … and retain jobs,” Hahn said in a statement.