ATK, a Fortune 500 aerospace, security, sporting goods and defense company, plans to lay off about 16 percent of its employees at its Mesa facility on Thursday.
“This decision was made only after careful review and assessment of business needs,” said Rod Gibbons, ATK director of communications. “It is a difficult decision for us whenever we have to lay off employees and we make it only as a last resort.”
The layoffs come after long discussions with employees beginning last year and an internal restructuring of the company, Gibbons said. Most employees were informed last year during employee meetings.
“Our industry is facing challenging times as the result of government spending reductions,” Gibbons said. “In order to effectively meet our current and future business obligations, and continue to improve efficiencies and our ability to remain competitive, we informed our employees last year that we plan to realign our Mesa facility under a new internal business structure.”
About 25 employees are expected to be let go, but final numbers are still not in place, Gibbons said. The layoffs will affect employees at all levels and represent a cross section of the facility. Layoffs will be effective in early April.
The Mesa facility, which houses the company’s Integrated Weapon Systems division, will remain operational with the reduced number of employees, Gibbons said. There are no plans for further layoffs at this time.
The most recent reduction in workforce at the Mesa facility, which opened in 2002, was in January of last year when 17 people were let go, Gibbons said. At the time of its largest employment, the facility had fewer than 200 employees, and currently employs about 150 people.
Gibbons said the company is offering employees a full spectrum of severance packages, including employee assistance programs and outplacement services.
“We know this is tough for our team out there in Mesa,” Gibbons said. “But the work our employees do is very, very valued. We’re doing what we can to keep business operating in Mesa.”
ATK announced last month it was awarded a fourth contract option to produce 30mm PGU-15A/B cartridges for the U.S. Army Contracting Command, Rock Island Contracting Center (RICC), Rock Island, Ill., as part of an agreement originally signed in 2007.
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