So, reduced to 3busin units from 4. The new structure is as follows: Space & Mission Systems (SMS), Communications & Spectrum Dominance (CSD), and Missile Solutions (MSL).
And then MSL spins off at least 40% of itself as a sorta stand alone IPO. And the former SAS unit is outsourcing work like crazy.
What's really happening folks?
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Lockheed and Raytheon got what they wanted without the equity giveaway. They got their framework of contracts. Only L3harris has to lose $1B + 200m discount + 3% warrants + $600m of factory investments in a sellout of their shareholders equity. Moreover if the Ipo profits go to missileco and the debt stays with remainco that explains how LMT got. The better of us.
@j0 Florida has been jealously eyeballing the Clifton work for years. The only thing that stopped it from being moved sooner was the skill set borne by some very experienced people in Clifton.
But, they are all but gone now. Replaced by a bunch of feckless losers who couldn't build a good product if their lives depended on it. Just take a look at their cycle time and failure rates. They buy low quality components from the cheapest vendors and sc--w up their own in-house products. Nobody wants to tell the king he's na--d.
@j6
Depot ops will be outsourced just as it was in Amityville .
Any truth in Clifton moving away from the Depot business? Seems like that was the future of IDECM, and without that and some outsourcing of VS I don’t see how Clifton could stay open
@j0 We had our first flight test of Viper shield a little over a year ago. We expect full rate production to begin shortly and deliveries expected to begin the end of 2026. However, as goes "the best laid plans of mice and men", you know the rest. We are dogged by test failures and workmanship issues in clifton. It looks like the CCA end of the program will be outsourced to another company and the programming of those ccas will be done at L3Harris, but not necessarily in clifton... Other locations to complete the work are being considered since the research and development phase is over.
Thought the EW Viper Shield was growing. Isn’t that their meat and potatoes in Clifton? Where would that go? Sold to LM? Or moved to another site?
@dg the issue is “DEI” and not the fact that this company fu--ing su-ks with knowledge transfer?
@dd
We expect CSD to dump the EW business also since they are no longer the only kid of the block with toys that work.
@dd We're told in Clifton that the former Space and Airborne Systems segment (SAS) will see some serious restructuring as well. SAS was the anchor at this location but several EW programs have already been partially or fully outsourced to other vendors. It seems the company is shifting its' focus away from avionics. While we have a very large facility, it is aging badly and the local labor pool
is not what it used to be. Politically friendly policies brought on by the last administration (like DEI) have ruined the once-respected skill set here. Even engineering is made up of dummies compared to the seasoned people (whom have mostly left already).
The value of the real-estate here seems to be out pacing the value of the business being done. One million square feet of space and acres of parking along the route 3 corridor is getting too tempting to pass up.
@ag The healthcare benefits got really bad after the 2019 merger. Using a 3rd party that doesn't even have a BBB rating to manage such a large number of employees was a terrible idea. Even retirees still enrolled in the "company" health plan were cheated regularly. This is something anyone with long term plans should think about. Time passes quickly and when retirement comes, you don't want to be with this terrible company.
I expect the new SMS to shed business units and/or people this year. It is too big relative to the other segments.
Since the merger in 2019,The company transitioned from a customer driven business to a purely investor driven company forsaking employees, and sadly customers too.
In government contract work, it's about the contracts. Is your site getting new contracts or renewed ones? You're likely okay if you are.
Corporate plays a shell game. It's very... Opaque. But it's 100% personal politics. It's how Kube got back on top. I'm happy with my lot here but it's not where I'm going to retire. I certainly wouldn't want to climb into that level of management. Benefits su-k too much for that level of BS.
My site is doing great. If it starts to slow down I'm going to look for what's next. L3Harris has terrible severance from what I've read. I'll look for some place with a health plan that doesn't nickel and dime me on pre-authorizations and terrible co-pays.