Few Layoffs
Harrison’s analysis indicates that sequestration may be less dire, at least in the short term, than some industry groups are predicting as they lobby Congress to avert the cuts. The Aerospace Industries Association, which represents major defense contractors, issued a study estimating a loss of 1 million defense-related jobs if the automatic cuts take place.
Robert Stevens, the chairman and chief executive officer of Bethesda, Maryland-based Lockheed Martin Corp. (LMT), the world’s largest defense contractor, has said that federal law may compel his company to send layoff notices soon to thousands of workers because of uncertainty about how many of them would have to be let go in January.
“Few immediate layoffs, if any, are likely to occur as a result of sequestration going into effect on January 2nd because on January 3rd virtually all contractors will be working on projects and activities where funding has already been obligated and thus is not subject to sequestration,” Harrison said in the report.