wpostServer: http://css.washingtonpost.com/wpost
Robert H. Smith School of Business
The Motley Fool

Market Foolery Featured Podcasts

  • MarketFoolery 04.23.2014
    On today’s show the guys talk about Amazon’s newly announced deal with HBO and what it means for the site. Plus they talk earnings from Intuitive Surgical, Yum! Brands, and more.
  • MarketFoolery: 04.22.2014
    Netflix rises on strong 1st quarter numbers and a well-executed price increase.  Valeant Pharmaceuticals makes a $45 billion bid for Allergan.  Plus, we analyze the latest results from McDonald’s and the new “Pay To Quit” program at Amazon.
  • MarketFoolery: 04.21.2014
    Hasbro shares rise on 1st-quarter profits.  LinkedIn tops the 300 million member mark.  And we dip into the Fool Mailbag to discuss the prospects for Airbnb’s potential IPO.
Capital Business
Posted at 04:35 PM ET, 09/12/2012

Engility eliminates divisions, plans employee cuts

Tony Smeraglinolo, chief executive of Engility. (Jeffrey MacMillan - JEFFREY MACMILLAN)
Chantilly-based Engility, newly spun off from New York-based L-3 Communications, said Wednesday it plans to reduce its workforce as part of a realignment meant to make it more efficient.

The government services contractor will offer a voluntary employment separation program to some management and administrative employees and then likely make additional reductions. Engility said in its announcement that the cuts, which should be complete by the end of the year, are expected to total less than 4 percent — or 320 — of its 8,000 employees.

The company also said the cuts would not affect the more than 7,000 employees who work alongside government customers.

Additionally, Engility said that as of Jan. 1 it will function as a centralized operating group with four business units, each focused on a different set of services: training and mission support; technology; engineering and program support; and international development.

The professional support services and mission support services units will be eliminated. John Heller, who headed the professional support services division, will lead Engility’s operations, while John Craddock, president of the mission support services unit, will take on a new strategic relations position focused on working with government customers.

Tony Smeraglinolo, Engility’s chief executive, said in an interview this summer that the company was weighing how to realign its divisions.

At the time, he said the Engility units “really look more like companies.

“That really was a good way to go to market four or five years ago when things were more relationship- or user-centric,” he said. “As budgets got more austere, you saw it move to more procurement-centric, where price became much more of the salient issue. Having this six or seven different entities probably isn’t how you want to go to market.”

Follow Marjorie Censer on Twitter: @CommonCenser

By  |  04:35 PM ET, 09/12/2012

Tags:  Engility, L-3 Communications, government services, government contracting

Read what others are saying

    © 2011 The Washington Post Company