McLean-based Science Applications International Corp. will spend about $15 million this fiscal year to bring roughly 450 corporate employees who have remained in San Diego to McLean and other offices, according to company officials.
The move follows the appointment of John P. Jumper as the company’s chief executive in February. In an interview soon after his selection, Jumper, tasked with improving SAIC’s declining profit, said one of his priorities would be cutting overhead costs to help SAIC win work.
In particular, he promised to reexamine operations remaining in California. Founded in 1969, SAIC relocated its headquarters to the D.C. area in 2009.
The move to the D.C. region “has not gone as quickly as many would have liked to have seen,” Jumper said in an interview soon after his appointment. “If there’s anything that has to be left out [in California], I’m going to have to be convinced that it needs to be there.”
The company declined interview requests last week, but said in a statement that it is relocating about 450 employees from San Diego. Some will move to McLean, but others will move to areas such as Orlando or Oak Ridge, Tenn. SAIC would not clarify how many are going to each locale, but said it will not need more office space to accommodate the moves.
“We do not expect to realize material savings with the move, but do expect to realize an immediate benefit from increased synergy [among] the corporate team,” the company said in its statement.
Close to 2,500 employees who are not part of the corporate staff will remain in San Diego, the company said.
The cost of the move — shared during a call with investors late last month — comes as SAIC prepares to present a new “execution plan” to implement its strategy.
Jumper told investors last month that company officials will be presenting the plan to its board at SAIC’s annual meeting, scheduled for Friday.
“We expect this to be the subject of lively discussion,” he told investors. “This is a very independent board that we have.”
Jumper has said in the past that part of SAIC’s strategic shift will mean winning more commercial work in areas such as health information technology and energy.
In the three months ended April 30, SAIC reported profit of $117 million (35 cents a share), down from $131 million (36 cents) in the same period a year earlier. Revenue grew about 3.5 percent to $2.78 billion.