Northrop Grumman Electro-Optical Systems Unit to Consolidate, Realign Manufacturing Operations


GARLAND, Texas, April 14, 2003 (PRIMEZONE) -- Northrop Grumman Corporation's (NYSE:NOC) Electro-Optical Systems business unit today announced plans to consolidate its night vision components manufacturing operations by relocating most of them from its Garland, Texas, site to its Tempe, Ariz., facility.

This realignment, which will begin in June 2003 and be completed by the end of 2004, will involve a reduction of 234 jobs at the company's Garland facility and the creation of 138 new positions at the Tempe plant. In addition, a total of 13 administrative positions at Tempe will be eliminated, with the work transferring to Garland.

Many of the displaced employees at Garland will be given an opportunity to transfer to Tempe.

"This realignment of our Electro-Optical Systems business will enable us to adjust our staffing levels and mix of workforce skills to meet the long-term business forecast," said Marion Van Fosson, director of the Electro-Optical Systems unit. "Although the decision to reduce our workforce was difficult, consolidating redundant operations will position us to compete more effectively in the night vision systems business."

The Garland facility will remain the headquarters of the business unit and will house design engineering and development, systems integration and test, and various administrative staff functions. All other manufacturing activities will be consolidated into the Tempe site.

Once the consolidation has been completed, there will remain 227 employees at Garland, with a staff of 584 in Tempe. Currently, there are 451 employees in Garland and 459 in Tempe.

Northrop Grumman will provide severance benefits and outplacement services to all employees affected by these workforce reductions.

Northrop Grumman Electro-Optical Systems is a strategic manufacturer of the latest generations of night vision image intensifiers and systems for military, law enforcement, and search and rescue operations serving all U.S. military services and many allied countries. In addition, the company designs and manufactures advanced infrared sensors/cameras, thin film coatings, and advanced optical components.

The business unit is part of Northrop Grumman's Baltimore-based Electronic Systems sector, a world leader in the design, development, and manufacture of defense and commercial electronic systems, including airborne radar systems, navigation systems, electronic warfare systems, precision weapons, airspace management systems, air defense systems, communications systems, space systems, marine systems, oceanic and naval systems, government systems, and logistics services.

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