WEST SPRINGFIELD — ITT Exelis announced Wednesday it will close down its manufacturing operation on 11 Interstate Drive at the end of June and lay off most of its 235-person workforce, a company spokesman said.
Spokesman Jared Adams said 200 employees will be let go on June 28. Twelve to 15 will have the opportunity to relocate to another ITT Exelis location, while 20 or so employees will remain at the West Springfield site for the immediate future in order to maintain facilities and equipment, he said.
The West Springfield plant manufactures power systems used in night-vision goggles that are used by the U.S. military, Adams said.
He said the move was made necessary by what the company projects to be a decline in U.S. defense spending, which is a significant portion of the company’s business. With U.S. military operations in Afghanistan slated to end in 2014, Adams said the company is expecting there will be less demand by the military for night-vision goggles.
“We believe there will be a decline in defense expenditures, regardless of whether sequestration happens or not,” he said.
Sequestration [pdf] is the term used for mandatory cuts in federal spending required under the Budget Control Act. The act, which has not yet been implemented, calls for cuts totaling $1 trillion from 2013 to 2021, and the cuts are to be evenly split between defense and non-defense spending.
He said ITT Exelis is also looking at ways to reduce costs at its other facilities throughout the corporation.
The employees being let go will receive a severance package that includes continued health and dental insurance for a period. Adams said he was not sure of the exact terms of the package, saying it may depend on each employee’s seniority.
Employees scheduled to be let go who remain with the company until June 28 will also receive a $1,000 bonus, he said.
The company still has some remaining orders that need to be filled before the layoffs take effect, and it intends to fill them, he said.
The ITT Exelis operation has been in West Springfield since 1974. It was originally known as K&M Electronics Inc. In 1999, it was purchased by ITT Industries.
It was reorganized under ITT Exelis in 2011 when ITT Industries split in to three separate corporations.