ITT Exelis to close local site in June
Date: 2/22/2013
By Carley Dangona
carley@thereminder.comWEST SPRINGFIELD — Earlier this month, ITT Exelis announced that its location on Interstate Drive would close June 28 due to a decrease in national defense spending.
The West Springfield site is a location that manufactures power solutions for Geospatial Systems.
According to Jane Khodos, senior manager for Communications, approximately 200 employees work at the West Springfield location, for which there will be 12 relocation opportunities. Outplacement services and severance benefits will be offered to all employees as well as a $1,000 bonus for staying until June 28.
She explained that the decision came after the U.S. government announced its goal of reducing defense spending by $1 trillion dollars over the next decade and the fact that troops are being withdrawn from overseas warfare. The company's decision to downsize is in response to the projected sequestration of national defense spending, slated to begin this March.
"The company seeks to reduce its footprint to minimize the results of impending budget cuts, positioning itself to weather the reduction," Khodos said. "At this time, no actual numbers have been provided to us."
Khodos said, "We must continually analyze our business structure and make adjustments to compete in a smaller, more aggressive marketplace. Because of anticipated reductions in U.S. defense expenditures, Exelis made the decision to consolidate its footprint. Unfortunately, this includes the West Springfield facility."
She continued, "The reduction in force is an effort to position Exelis Geospatial Systems for growth by having the skills, processes and technology to compete and win in our chosen markets. Those markets include satellites and space-based business, ISR [intelligence, surveillance, and reconnaissance], precision instruments and environmental intelligence, where Exelis has unique, core capabilities."
Khodos told Reminder Publications that the cutbacks could be described as "par for the course." She added that like other defense companies, ITT Exelis is "bracing" for the changes.
She stated, "We're looking at our facilities to consolidate, but to continue to deliver to our customers. We want to remain viable for all stakeholders — shareholders and customers."
When asked what the company would like the employees to know, she added, "The people who worked for our business in West Springfield have been instrumental to the company's success and we are very thankful for their service."
The ITT Exelis plant was initially K&M Electronics, a company established in 1974, which ITT acquired in July 1999, according to Khodos.
