Overall employment will be reduced by 1,200, or about 10 percent of the total work force. The plan includes a 30 percent reduction in management positions. While the total work force reductions will take place gradually over the remainder of 1999, the management reductions will be accomplished by the end of June. The company will, however, continue hiring in certain areas to maintain an appropriate skill mix. More than 300 of the 1,200 planned reductions have already been achieved through attrition since the beginning of the year.
Attrition is projected to continue accounting for a portion of the total planned reductions.
Employees who qualify for the company's existing voluntary layoff policy may further minimize the number of layoffs necessary. Work force reductions are a painful part of this effort, but we are committed to minimizing the number of reductions that come through layoffs. Other cost cutting initiatives include property consolidation, asset reductions and initiatives that will streamline production, manufacturing and engineering processes throughout the enterprise. The company has placed its Deer Creek Canyon headquarters building near Denver on the market for sale and intends to consolidate operations at its Waterton facilities southwest of Denver. Astronautics also expects to sell at least 10 percent of company assets to free up space they occupy while reducing costs of inventory and maintenance.