Layoffs at Large Defense Contractor--How will it happen?

[Fasteddie82]

I'm currently a mid-level engineer at a large defense contractor. Lately, things have been slowing down. All of the signs are there: There just isn't as much work as their used to be. Some of the guys who work there as contractors (as opposed to direct hires) have had their contracts cut. And there was an announcement that they had stopped hiring mid-level engineers.

So, basically, when I look into my crystal ball, I see layoffs coming in the future. Not sure if it will be next month, next quarter, next year, or what, but I gotta think they will come at some point.

I've never been through layoffs at a large defense contractor, or a large company period. How does it usually happen? How do they determine who to cut? Do they cut the least-senior people first? The highest-salaried? The people working the programs that are making the least money?

Or do they just put us all in a room and let us fight it out?

 

[MikeHalloran]

There will be no warning.

There will be no recourse.

There will be no visible logic applied.

Keep your head down.

Do your work.



Mike Halloran
Pembroke Pines, FL, USA

 

[swivel63]

start making copies of everything you'll think you'll need.

 

[IRstuff]

All jokes aside, the process is usually deterministic, and usually rational, but you just won't be aware of it. Typically, the managers are tasked with maintaining "totem pole" lists, ranking ordering keepers and droppers, in order of priority. There will be someone whom they will want to keep, even at the cost of dumping more people. There will be somone they will want to drop, even if it's not necessarily required. In between are everyone else.

The rankings are somewhat subjective, but the usual suspects of ability, adaptability, team-orientation, productivity, etc. are criteria for keeping. Note that there will always be some managers that tend to keep "cronies" even if they're worthless, simply because of loyalty and clubbiness. In those situations, you're screwed, regardless.

In other cases, obviously, you need to gently remind your managers of your worth to them, either because of single skill, or, desirably, multiple skills, that are essential to the group. In those cases, you need to look around and see which specialty has the least amount of work, and if you can get proficient at that specialty, and the managers know about it, it can spell the difference between staying or going, since it would rationally be deemed worthwhile for someone who can put on a "different hat" and pinch hit in a specialty, but is able to do something else that can contribute to the organization's performance.

The norm is two weeks of severance, although there are companies that will walk you out an hour after giving you the pink slip, on the presumption that there's less opportunity for mischief. Some companies, like Northrop Grumman, use to give 6 months severance, to minimize the likelihood of getting sued for violating certain aspects of labor law that require lower severance and notice for any reduction of force larger than 10%, or for plant closures.

Some companies, Northrop and Raytheon, have hosted job fairs for their displaced employees, but the hit rate is often pretty poor, since the other companies are possibly in similar straits, and there's always a problem of skills matchup with another company.

Good luck!! Be hopeful, work your position on the totempole, but be prepared for the worst.

TTFN

FAQ731-376

 

[corus]

My experience is that there is no rationale at all, other than the manager will get rid of people they don't like first, and only then decide on who are vital to the company/department. If you're a toilet attendant then you'll probably be the last to leave. If you're amongst a throng of engineers, wear white socks and red braces, and like to amuse your colleagues with hilarious noises from your back-side, then take some boxes ready to pack. Of course if your manager also likes to amuse the staff with rib-tickling squelching noises from their arm-pits, then your job is probably safe.


corus

 

[SomptingGuy]

It depends on what the company is aiming to achieve. The first round I survived involved a big vertical slice through the company, from directors right down to new graduate hires.

The next two involved "pools". The management decided how many positions were required in each function. For those with too many, everyone was told that they were in a pool of N, with M to go. For those in a pool of 1 with 1 to go, things were bleak. I remember there being one pool of 3 outstanding guys, with 1 to go. It was a few tense and uncomfortable weeks before that name was announced.

The most recent one was done with no published pools, just a number and three weeks to bite your nails.

Never has there been an announcement of the names of the unlucky ones. It's only IT that really know (please deactivate the following accounts).



- Steve

 

[IRstuff]

The most contorted layoff I've seen involved an all-hands at 0800 in our building across the street. We get there, and there are 3 different meeting rooms, with names of attendees posted on the door.

After we got into the room, we were informed whether our room, could stay, or leave immediately, under escort, or leave after completion of our current projects.

It's amusing to think that there's no rationale, but there always is, sometimes, it's not anything to do with the future of the company, sometimes, it is, but there's always a rationale. Engineers like to gripe about randomness of management, but their decisions are simply based on different criteria, and often, on less data, since that's the nature of the beast.

TTFN

FAQ731-376

 

[EngineerDave]

Quick tips from someone who has just been through it

1) Get your resume up to date
2) Start looking around at different opportunities.
3) Make copies of everything you need (don't tell people you are doing this)
4) Work hard, work late, volunteer for projects
5) Kiss up to the manager, remind them of accomplishments as they've said.

1 and 2 are important even if you are unlikely to be cut and plan on staying there. They will give you a big head start if you are cut.

In my situation I was kind of what I'd call a utility infielder of the group. I'd pick up the work that others were too lazy or unwilling to do. I was the #1 on some things and the #2 on many things. The built in backup and assistant on things.

I was also the one that was hired in most recently. They used that excuse for the layoff. Last in, first out.

I knew there was going to be a cut or two (actually saw my boss pull up information on severance one day I was in his office, just didn't know I was one of the people it was with regard to), just didn't expect if from my group.

One other tip I read about online and it actually applied in my case was, my boss was unusually quiet towards me over the past month before it happened. I thought it had to do with my dispute over the performance review (see other thread). In the end that and the fact he knew a layoff was eminent was the reason.

Stuff makes me paranoid thinking about it.

 

[ash060]

Here is a little anecodate from an engineer I know who was laid off by a big aeronautics company in the '70's.

He told me that the HR person just walked into the engineering office and started walking down the line of offices and let go ever other engineer that was at his desk.

No rhyme or reason to it.