OutFront live Mon. – Fri. 7p ET

The South Korean President likened the actions of the captain and some crew members of the sunken ferry Sewol to murder. Erin Burnett has the latest.
July 30th, 2012
08:50 PM ET

Defense contractor weighs in on military budget cuts

CNN Erin Burnett tackles looming budget cuts to the U.S. military. Burnett takes on whether the claims of national security disaster add up when it comes to sequestration?

We asked Wes Bush, CEO of U.S. defense contractor of Northrop Grumman.

Defense execs warn of looming job loss because of defense cuts

Chief executives of leading defense companies told a House panel Wednesday they would have to start informing employees just before the 2012 election that their jobs would terminated in January if Congress fails to make a budget deal, triggering hundreds of billions of dollars in defense cuts that would ripple through the defense industry sector.

The four CEOs testified before the House Armed Services Committee and echoed what many defense industry officials have been sounding the alarm about for months: The automatic cuts, known as sequestration, would be devastating to the defense sector and the economy.

Testifying before the House panel were the chief executives from industry giants Lockheed Martin, European Aerospace Defense Systems (EADS) and Pratt and Whitney, as well as the head of an small aerospace business, Williams-Pyro.

FULL POST


Filed under: Economy • National Security
soundoff (One Response)
  1. thomasvincentahearn

    A) Damn, you are good at this kind of deconstruction... (B) Taking Wes at his word, that cuts in PROJECTED increases in Defense spending will necessiate lay-offs, implies that there are already people sitting around at Northrop waiting to do this projected work. Seems like a bad business model to me but let's say he's telling the truth. If Northrop lays-off massive amounts of workers, engineers and machinists let's say, I certainly hope other American contractors are lined up at N-G gates waiting to hire these talented workers because you can be certain Siemens, and their ilk, will be. It really sounds like sabre-rattling to me: who would expect that from the military? You know, the other countries we compete against don't spend nearly the amount of money we do on the military and it's not because they're a bunch of cowards, weaklings and hippie pacifists. They realize each dollar (Euro, Yuan, ect) spent on the military is money down a hole that could have been spent more wisely on developing their country. Look at the history of imperialist nations (and we are that-though only through the speading of our idealogy) and see what has become of the great military powers: they all fall into disrepair in vey short order. Learn from history or be doomed to repeat it...Love your show, I never miss it. All the Best, TVA.

    July 31, 2012 at 11:08 am | Reply

Post a comment


 

CNN welcomes a lively and courteous discussion as long as you follow the Rules of Conduct set forth in our Terms of Service. Comments are not pre-screened before they post. You agree that anything you post may be used, along with your name and profile picture, in accordance with our Privacy Policy and the license you have granted pursuant to our Terms of Service.