Northrop Grumman to cut 642 shipbuilding jobs

Northrop Grumman Corp. said Wednesday it would reduce its work staff by 642 at its shipbuilding operations in Pascagoula, Miss. The Los Angeles-based company blamed the layoffs on the "cyclical nature of shipbuilding." The facility is currently building two LPD-17 amphibious-transport ships, which are expected to be completed in 2013. Last month, Northrop said it would consolidate its shipbuilding operations and would explore options for the business, including a possible sale. The U.S. Navy's long-term shipbuilding plan is to acquire a total of 55 littoral combat ships at $480 million each, with Lockheed Martin Corp. /quotes/comstock/13*!lmt/quotes/nls/lmt (LMT 71.67, +0.42, +0.59%) and Australia's closely-held Austal as the prime contractors. Shares of Northrop slipped 1.4% at last check to $54.55.