GDFW This Week, Special Issue, July 29, 1992 Page: 1 of 4
This periodical is part of the collection entitled: Convair/General Dynamics Newsletters and was provided to The Portal to Texas History by the Lockheed Martin Aeronautics Company, Fort Worth.
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Restructuring for Low Volume Production
To: All Employees
From: Gordon England
As you are aware from previous communications and from local and national media,
the defense budget has declined drastically over the past five years. Further declines
are expected. Where we once had F-16 production rates as high as 30 aircraft a
month, we are now projecting production rates as low as about four aircraft per month
by the mid- to late-1990s.
Due to these continuing declines in the defense budget and our production rate, it is
necessary that we reduce our employment commensurate with the reduction in orders.
At the same time we feel that we must fundamentally restructure our operations to be
more competitive at low volumes of production -- in other words, to be the highest
quality and lowest cost supplier of tactical military aircraft even at low volume.
Therefore we are taking the following actions to restructure our operation: simplifying
our processes and procedures, including the elimination of some layers of
management and the elimination of redundancies that exist within the organization;
reducing overhead costs; and outsourcing certain non-competitive manufacturing
processes.
The net effect of these changes is that we will be reducing the number of employees at
the Fort Worth Division on an ongoing basis through the end of 1994. As I have
indicated to many of you in earlier discussions, it is now the policy of the division for all
employees to know of our employment plans as early as possible. This
communication is in line with that policy.
Between now and the end of 1994, total employment at the Fort Worth Division is
projected to drop by about 5,800 people. Reductions will occur throughout the
division, although the largest number will be in manufacturing. The first notices,
affecting approximately 200 employees, will be issued over the next several weeks,
with actual reductions occurring 60 days later. An additional 650 to 700 layoffs are
scheduled for the remainder of the year. Approximately 1,500 people will be laid off in
the first quarter of 1993, and 800 to 900 per quarter thereafter through the end of 1994.
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General Dynamics Corporation. Fort Worth Division. GDFW This Week, Special Issue, July 29, 1992, periodical, July 29, 1992; Fort Worth, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1091936/m1/1/: accessed April 25, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Lockheed Martin Aeronautics Company, Fort Worth.