Northrop Loses Bid, May Layoff Workers

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Northrop Grumman Corp. failed to land another billion dollar contract Wednesday, and may have to lay off workers in New York.


The Los Angeles-based defense and government contractor was beat out by Boeing Co. for a coveted Secure Border Initiative contract to implement technology along the more than 6,000 miles of territory along Canada and Mexico. The contract could be worth as much as $8 billion over its lifetime and marks the second-largest contract award by the Department of Homeland Security in its three-year history.


Chicago-based Boeing beat out Ericsson AB, Raytheon Co., Lockheed Martin Corp., as well as a team of Northrop and General Dynamics Corp. for the contract. Last week, Northrop lost out an $8 billion contract to Lockheed Martin to build a replacement to the space shuttle, a blow to its efforts to diversify more of its revenues outside of the military.


Separately, around 160 employees across Upstate New York may be laid off if the government doesn’t renew a Northrop contract for work with the U.S. Citizenship & Immigration Services.


The company said it alerted New York’s Department of Labor that the technical services contract will expire at the end of the month and if it is not renewed all employees will be laid off. Northrop said a decision on the contract is expected by the end of the month.


Despite the rounds of bad news, Northrop’s stock has continued to perform well, gaining more than $5 a share over the past three months, trading at $68.20 early Wednesday.

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