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Northrop, meet Grumman Northrop Grumman is the product of the 1994 merger of Northrop Aircraft, which was founded as an aerospace company in 1939, and Grumman, a defense electronics manufacturer founded in 1929. Northrop was based in Southern California; Grumman was the largest private employer in Long Island. The combined firm is a major defense contractor that is the leading maker of the B-2 stealth bomber, and a major supplier of the F/A-18 fighter jet, as well as the fuselages for Boeing's 747 jumbo jets. Northrop Grumman, meet Lockheed Martin In 1997, Northrop took a step away from its focus on heavy aircraft production when it bought Logicon. Later that year, it agreed to be purchased by competitor Lockheed Martin for about $11 billion. However, the Pentagon and the Department of Justice objected the deal, leading Lockheed to back out in July 1998. Northrop's stock, which had hit close to $140 a share in February 1998 because of the anticipated deal (Lockheed was set to pay a 40 percent premium for Northrop), dropped to about $70 a share in the summer. Restructuring In the aftermath of the failed merger, industry analysts began speculating that Northrop would be split up and sold off, that the company was not large enough to survive in an age of defense giants, namely Boeing, Raytheon and Lockheed Martin. In fact, officials of England's British Aerospace and GEC began licking their lips and talking what parts of the company they would like to acquire. Although as the No. 4 defense firm, Northrop lags substantially behind the top three, CEO Kent Kresa has indicated that he intends to keep the company intact and independent, although rumors continue to pop up. To push itself back on a more profitable track, the company is pursuing a major reorganization. This plan calls for the consolidation of Northrop Grumman's previous five divisions into two major sectors and its Logicon subsidiary. One sector, the Integrated Systems & Aerostructures that will produce military and commercial aircraft, will be headquartered in Dallas. The other, the Electronic Sensors & Systems Sector that will manufacture products like radars and mine hunters, will be centered in Baltimore. The Logicon subsidiary, which builds information technology products, is located in Herndon, Virginia. As part of the reorganization, Northrop Grumman announced major layoffs. All told, the company will trim 10,500 jobs by the year 2000. The company expects that the cuts will help it save $300 million annually by 2001. It expects revenue to remain flat for two years, before kicking back up. We're not just plane builders In order to improve its performance, Northrop is attempting to become less dependent on defense aircraft production. The firm is concluding production of the B-2 stealth bomber by the end of 1999, and is cutting 4300 jobs from that business. Northrop is also decreasing production of the F/A-18 strike fighters. In contrast, it expects that its electronics and information technology businesses to gain 2500 jobs during the reorganization. In a series of moves to sharpen its strategic focus, in June 2000, Northrop sold off its commercial aerostructures business which makes fuselages and other structural aircraft parts to private investment firm Carlyle Group for $843 million in cash and securities. The sale is in keeping with the company's desire to concentrate on defense electronics and systems integration, including military aircraft design and development. At the same time, the comapny also said it would buy military systems maker Comptek Research Inc. for $155.6 million in stock in order to boost its push into electronic battle management and computer warfare.
Each division at Northrop Grumman conducts its own recruiting and hiring. Applicants should be careful to obtain the correct department address and contact name. This information is available at the company's employment web site, located at www.northgrum.com, which allows job seekers to search for openings by location and other criteria. Northrop finds employees through a variety of means. Those who are able to get a foot in the door at Northrop should be happy to hear that openings are "advertised internally in the Northrop Grumman job openings newspaper." Explains one insider: "This gives our employees the first chance to move up." Northrop also "holds job fairs from time to time in cities that have a high density of the skills we need, like Boston, Dallas, or Los Angeles." And Northrop does recruit on select college campuses. As for the interviewing process itself, several contacts report that "the interview is not a test and it is not meant to be stressful." Explains one, who reported being flown to Los Angeles while in college to interview with two managers, in a two-on-one. "I was told 'Relax, we're not here to tag-team you,' and they simply asked me if I had any questions." Another contact, however, reports that "there's one technical interview and two interviews to find out what you would like to do." That insider says that "the technical interview is to see if you have the basics and that you are familiar with what they are looking for." Because they involve access to classified information, many positions at Northrop require a government security investigation and U.S. citizenship. In background checks, the company will check into "financial background and drug or alcohol use." "Yes," says one employee, "they'll ask your friends."
Disparate culture The culture at Northrop Grumman, insiders agree, depends a lot on where one works. One insider in Baltimore, for example, reports that "the culture is bureaucratic, but the individual is respected." At Pico Rivera (a site the company is shutting down), "it's pretty laid back." In Dallas, it's "really Texaney, sort of a 'good ole boy' culture." This difference in culture is represented in the dress codes at various locations. Explains one insider: "Some sites choose to be more lax on dress codes. Some are seasonal - ties for men are not required during hot summer months." At one site, however, "people dress in business suits or true Dilbert clothes, which go under shop coats or clean room garments." The difference in culture is most apparent when it comes to the history of the business units within the company. Explains one insider: "Northrop is now many companies within a company." Another is more specific: "The old Grumman sites generally reflect the New York attitude - crusty around the edges, not too many women." Continues that contact. "Management at those sites is still New Yorker guys named Tony who bark orders from offices. For old Grummaners, they say Northropers are overpaid California pretty boys." "The best benefits" "The best benefits, hands-down, even for aerospace," says one insider about Northrop's perks. Part of these bennies, explains a contact, is that "they will do tuition reimbursement at 80 percent and 100 percent if you get a degree." The company also has a creative vacation policy under which "you can take the opportunity to take an extra week of vacation above what you're entitled to." A contact explains how it works: "You can elect to deduct a little from each week's pay and collect a full check when you take that week off." Pay at Northrop is described as "competitive," though again, it varies from location to location. Reports one insider: "The Los Angeles-area Northrop sites probably pay the best, except for at Oxnard, the old Grumman site." How compensation is structured varies, too. One insider, for example, reports that as a nine-to-fiver, there's "no overtime pay." Another contact, however, reports that "generally even for salaried folk, Northrop pays for OT by prorating your pay to an hourly basis." Kind hours "Northrop is a good place to work," reports one former employee. "It is not a sweatshop. This means you can have a life." Says another Northrop contact: "Work hours generally are not really long, but it depends on the job." Insiders agree that both managers and workers at Northrop need to exhibit flexibility. Says one contact: "Those that insist on heading out the door when the shift ends might not be as highly appreciated by their manager as one who demonstrates flexibility." Another says that flexibility works the other way at Northrop, too. "There are three work shifts, and you can work with your manager to schedule your eight-hour day. They are generally flexible as long as you put in the eight hours."
Human Resources
Military surveilance;Combat aircraft;Defense electronics and systems;Airspace management systems;Information systems;Marine systems;Precision weapons;Space systems;Commercial and military aerostructures
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