Also This Week, Downsizings from Logitech, Reading Truck, Ralphs Grocery, Sidecca and many more
Even without the impact from sequestration, David F. Melcher, CEO and president of defense contractor Exelis, said his company expects that the U.S. federal contracting environment will slow over the coming months and years. Funding will eventually be reprioritized from in-theater operations to investments aligned with the administration’s strategic objectives.
As such Exelis plans to continue to rightsize the business. 2012 results included about $12 million in restructuring expense, most of which was incurred in the fourth quarter.
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“In our 2013 guidance, we anticipate $60 million to $70 million in restructuring charges, with the majority of the expense incurred in the first half of the year,” Melcher said. “We expect to consolidate our facility square footage by about 10% during the year, and we are targeting at least that much in the following 12 to 24 months.”
“We will manage our employee population to the market requirements,” Melcher said. “We expect to reduce our total employee headcount by about 6%, including nearly 600 employees who have already accepted a voluntary early retirement.
“In parallel, we’re moving out on a second phase of deeper business restructuring over the next 12 to 24 months that will, as I mentioned, further consolidate our footprint, optimize appropriate spans of control within our organizations, reduce our corporate and division overhead and reengineer business processes for greater efficiency and cost reduction, allowing for appropriate investments in enterprise systems,” Melcher said.
Peter J. Milligan, CFO and senior vice president of Exelis added, “Going forward, we’ll have... south of 7 million square feet as we exit 2013. We need at least another 10% of that to be reduced over time.”
As of year-end 2012, Exelis had 148 locations, in 12 countries on four continents. Those properties totaled 7.6 million square feet, of which 137 locations, or 4.9 million square feet were leased. The following table shows the significant U.S. locations.
- Location; Sq Ft; Owned / Leased
- Clifton, NJ; 921,000; Owned
- Rochester, NY; 632,000; Leased
- Rochester, NY; 436,000; Owned
- Fort Wayne, IN; 302,000; Leased
- Roanoke, VA; 301,000; Owned
- Fort Wayne, IN; 241,000; Owned
- Rochester, NY; 225,000; Owned
- Van Nuys, CA; 168,000; Leased
- Colorado Springs, CO; 277,000; Leased
- Herndon, VA; 167,000; Leased
- McLean, VA (Corporate Headquarters); 56,000; Leased
Facility Closures & Downsizings
Logitech International
S.A. approved a workforce reduction expected to result in a reduction of $16 million to $18 million in annual operating expenses this year. The charge is related primarily to personnel reductions, with the company eliminating approximately 140 positions, or 5% of its worldwide non-direct-labor workforce. This is in addition to the previously announced $80 million savings in annual operating costs from its April 2012 restructuring.
The Reading Group
, LLC, a leading provider of service truck equipment, will consolidate the activities of its Seneca, PA; Columbus, OH; and Abington, PA; sites into its larger regional facilities.
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. | Company | Address | City | State | Closure or Layoff | No. of Layoffs | Impact Date |
. | YP Western Directory | 5460 E. La Palma Ave. | Anaheim | CA | Layoff | 111 | 3/13/2013 |
. | Sidecca | 400 S. Baldwin Ave., Suite 1550 | Arcadia | CA | Closure | 10 | 3/31/2013 |
. | American Suzuki Motor | 3251 E. Imperial Hwy | Brea | CA | Closure | 187 | 3/14/2013 |
. | Sidecca | 1048 Brea Mall, Suite 1048 | Brea | CA | Closure | 11 | 3/31/2013 |
. | Sidecca | 201 East Magnolia Blvd., Suite 234 | Burbank | CA | Closure | 9 | 3/31/2013 |
. | Mills-Peninsula Health Services | 1609 Trousdale Drive | Burlingame | CA | Closure | 48 | 1/4/2013 |
. | Rome Research Corp. | 18000 E. Perimeter Road | Camp Roberts | CA | Layoff | 54 | 3/31/2013 |
. | TE Connectivity | 550 Linden Ave. | Carpinteria | CA | Closure | 116 | 5/4/2013 |
. | Sidecca | 440 Los Cerritos Mall, Suite E07 | Cerritos | CA | Closure | 11 | 3/31/2013 |
. | Sidecca | 9237 Eton Ave. | Chatsworth | CA | Closure | 24 | 3/31/2013 |
. | Ralphs Grocery | 1100 W. Artesia Blvd | Compton | CA | Layoff | 11 | 10/3/2013 |
. | Ralphs Grocery | 2201 S. Wilmington Ave. | Compton | CA | Layoff | 32 | 10/3/2013 |
. | PSPM | 7700 Imperial Hwy, Suite R | Downey | CA | Closure | 57 | 1/4/2013 |
. | Technicolor | 1763 Flower St. | Glendale | CA | Closure | 50 | 3/28/2013 |
. | Bechtel Power | 3862 Depot Road | Hayward | CA | Closure | 72 | 3/15/2013 |
. | California Redwood Co. | 1165 Mapel Creek Road | Korbel | CA | Layoff | 155 | 3/25/2013 |
. | Ralphs Grocery | 850 S. Cypress St | La Habra | CA | Layoff | 3 | 10/3/2013 |
. | Kashi | 4276 Executive Square, Suite 500 | La Jolla | CA | Closure | 28 | 8/3/2013 |
. | PSPM | 1725 Pacific Ave. | Long Beach | CA | Closure | 20 | 1/4/2013 |
. | Ralphs Grocery | 4841 San Fernando Road West | Los Angeles | CA | Layoff | 15 | 10/3/2013 |
. | Sodexo | 11301 Wilshire Blvd., Bldg. 224 | Los Angeles | CA | Closure | 130 | 11/3/2013 |
. | The Cheesecake Factory (Grand Lux Cafe) | 121 N. La Cienega Blvd. | Los Angeles | CA | Closure | 132 | 3/19/2013 |
. | Sidecca | 2054 E. Montclair Plaza Lane, Suite 2054 | Montclair | CA | Closure | 9 | 3/31/2013 |
. | PSPM | 20377 SW Acacia | Newport Beach | CA | Closure | 12 | 1/4/2013 |
. | Sidecca | 9301 Tampa Ave., Suite 83 | Northridge | CA | Closure | 11 | 3/31/2013 |
. | St.Joseph Hospital | 1100 W. Stewart Drive | Orange | CA | Layoff | 128 | 1/4/2013 |
. | Woodward Inc. | 12137 Montague St. | Pacoima | CA | Layoff | 14 | 3/29/2013 |
. | Vmware | 3401 Hillview Ave. | Palo Alto | CA | Layoff | 310 | 1/4/2013 |
. | Ralphs Grocery | 14900 Garfield Ave. | Paramount | CA | Layoff | 23 | 10/3/2013 |
. | Macy's | 400 E. Colorado Blvd. | Pasadena | CA | Closure | 109 | 3/18/2013 |
. | HSBC | 931 Corporate Center Drive | Pomona | CA | Layoff | 75 | 6/4/2013 |
. | Ralphs Grocery | 1500 Eastridge Ave. | Riverside | CA | Layoff | 24 | 10/3/2013 |
. | Southern California Edison (Songs) | 5000 Pacific Coast Hwy | San Clemente | CA | Closure | 100 | 11/3/2013 |
. | Bae Systems-San Diego Ship Repair | 2205 E. Belt St., Foot of Sampson | San Diego | CA | Layoff | 302 | 7/4/2013 |
. | Hilton San Diego Mission Valley | 901 Camino Del Rio South | San Diego | CA | Layoff | 148 | 3/21/2013 |
. | Kyocera Solar | 8611 Balboa Ave. | San Diego | CA | Layoff | 108 | 3/20/2013 |
. | San Francisco Marriott Marquis-Fourth St Bar & Grill | 55 Fourth St. | San Francisco | CA | Closure | 24 | 1/4/2013 |
. | Bon Appetit Management Co. at Cisco | 225 Tasman Ave. | San Jose | CA | Closure | 188 | 8/3/2013 |
. | Fry's Electronics | 1741 Junction Ave. | San Jose | CA | Closure | 163 | 3/15/2013 |
. | Dignity Health (West Bay Financial Svcs) | 1825 S. Grant St., Suite 900 | San Mateo | CA | Layoff | 70 | 1/4/2013 |
. | Powerwave Technologies | 1801 East St., Andrew Place | Santa Ana | CA | Layoff | 182 | 1/4/2013 |
. | Tellabs | 4555 Great America Pkwy, Suite 601 | Santa Clara | CA | Layoff | 150 | 5/4/2013 |
. | Bechtel Power | 13505 Carissa Highway (Hwy 58) | Santa Margarita | CA | Closure | 40 | 3/29/2013 |
. | Ocean Avenue Seafood | 1401 Ocean Ave. | Santa Monica | CA | Closure | 54 | 3/17/2013 |
. | Gargiulo | 3040 Somis Road | Somis | CA | Closure | 677 | 1/4/2013 |
. | Cascade Logistics | 857 Stonebridge Court | Tracy | CA | Closure | 37 | 3/15/2013 |
. | Sidecca | 24201 W. Valencia Blvd., Suite 2420 | Valencia | CA | Closure | 10 | 3/31/2013 |
. | PSPM | 15350 Sherman Way, Suite 325 | Van Nuys | CA | Closure | 20 | 1/4/2013 |
. | Colleen Strawberries (EKT Farms) | 959 Riverside Road | Watsonville | CA | Layoff | 245 | 1/4/2013 |
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