One hundred forty-nine workers are being laid off as a major defense company worth $50 billion just announced it’s permanently closing a California factory.
This marks one of the biggest single plant shutdowns since the collapse of the defense industry in the 1990s. The closure starts in September and continues through 2026, having harsh consequences for manufacturing jobs in California’s aerospace region.
Jobs Vanishing
Since 1990, California has lost over 60% of its defense manufacturing jobs, totaling 528,000 positions. Companies have been pulling out of California in favor of cheaper states with lower costs.
What started with Cold War defense cuts in the 1990s continues today as corporations slash expenses to boost profits in a competitive market.
History Repeats
California’s aerospace industry peaked in 1988 with 376,200 jobs, but as the uncertainty of the Cold War came to an end, defense spending was cut.
The Van Nuys area has deep military manufacturing roots dating back to World War II, when the Navy and Lockheed built factories there in 1944. Los Angeles County alone lost 90,000 aerospace jobs between 1986 and 1992.
Market Control
In the 1980s, 51 major companies were part of the defense industry, but today, there are just five giants. This concentration lets remaining companies aggressively cut costs through closures and layoffs.
Now, 90% of missiles come from only three suppliers, giving these mega-corporations enormous power to reshape the industry.
Company Revealed
L3Harris Technologies—America’s sixth-largest defense contractor with $21 billion in yearly revenue—filed official closure notices on July 18, 2025.
The company will shut its Van Nuys facility at 7821 Orion Avenue, eliminating 149 jobs starting September 30. The move comes as work is planned to migrate to New Jersey for “increased collaboration and synergies.”
Local Pain
The closure kills high-paying engineering jobs in a region devastated by decades of aerospace losses. Los Angeles County lost half its defense manufacturing since the 1980s.
UCLA research shows 60% of laid-off aerospace workers either stay unemployed long-term or leave California entirely.
Worker Struggles
UCLA Professor Paul Ong found that half of the aerospace workers laid off in 1989 were still jobless two years later. “Aerospace workers are not returning to new employment,” he stated.
Those finding work took 33% pay cuts, dropping to $22,000 annually from aerospace salaries.
Industry Exodus
The “Big Five” defense contractors—Lockheed Martin, Boeing, Raytheon, Northrup Grumman, and General Dynamics—have all moved manufacturing to cheaper Southern states while keeping engineering in traditional hubs, which has caused trouble for defense employees in California.
Boeing shifted production from California to South Carolina. Lockheed moved aircraft assembly to Georgia decades ago.
Cost Cutting
L3Harris’s “LHX Next” program targets $1.4 billion in savings by 2025. CEO Christopher Kubasik said the company “exceeded our cost-savings target for 2024, achieving $800 million.”
The program uses artificial intelligence and automation to eliminate jobs while boosting profits through facility closures.
Merger Power
The 2019 merger, creating L3Harris, gave the company enough scale to close factories.
This $50 billion combination lets them shut Van Nuys while moving work elsewhere—something smaller companies couldn’t do. Their recent $4.7 billion Aerojet Rocketdyne purchase provides even more closure justification.
Legal Questions
Meanwhile, law firms are investigating whether L3Harris properly followed federal worker notification rules. Strauss Borrelli PLLC questions whether or not a 60-day notice adequately protects workers.
History shows that only 16% of laid-off California aerospace workers quickly find new jobs, while one-third stay unemployed for over seven months.
New Leadership
After the 2019 merger, CEO Christopher Kubasik took the reins at L3Harris, pursuing aggressive cost-cutting.
The company sold 13 non-core businesses worth $2 billion while buying $2.7 billion in strategic capabilities. Leadership changes reflect evolution from component supplier to full defense contractor.
Strategy Shift
L3Harris calls itself the “Trusted Disruptor,” competing for major contracts across space, air, land, sea, and cyber warfare.
They’re expanding from component supplier to prime contractor with 40+ satellites in development. The Van Nuys closure fits this strategy shift.
Market Doubts
Analysts give mixed reviews of L3Harris stock, with price targets ranging from $240 to $274. While cost-cutting boosts short-term profits, questions remain about long-term innovation and keeping skilled workers.
Heavy reliance on government spending creates political risk from changing budget priorities.
What’s Next
Will other defense companies abandon California’s expensive business environment?
The Van Nuys closure shows how mega-corporations can relocate entire operations, potentially leaving California with only research jobs. Can the state reinvent itself for 21st-century defense work or accept manufacturing’s decline?
