Northrop Grumman Eyes 5,000 Job Cuts

Shipbuilder Northrop Grumman Corp. has notified state officials in Louisiana the company may close a shipyard near New Orleans that would leave about 5,000 employees out of work.

According to a report in the Washington Post, Louisiana Gov. Bobby Jindal was told by company officials that the U.S. Navy shipyard could be closing because Northrop lacks orders beyond 2012. Jindal responded in a statement by saying the state would seek possible buyers and tenants to replace Northrop.

A spokesman for Northrop, the third-largest U.S. defense contractor, told the Post the Navy’s future shipbuilding plan “requires a smaller industrial base.”

Northrop has operated the Louisiana shipyard since acquiring it from Litton Industries Inc. in 2000.