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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

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