BAE Systems’ shipyard in Mobile, Alabama has announced that it will be laying off more than 150 employees in response to a downturn in the company’s ship construction and repair business. The proximate cause of the layoffs can be attributed to the prolonged industry slump and hard times that have befallen energy companies, and in particular, those oil and gas operations located offshore in the Gulf of Mexico.
BAE’s spokesperson, Karl Johnson, said that “ship repair operations would end immediately and ship construction will continue through spring. The reason we're taking this step with that ship repair operation is that its primary business was supporting vessels that were part of the oil and natural gas industry in the Gulf of Mexico. That business has been in a prolonged downturn.” Previously, approximately 200 people were laid off in August 2016. There has been no announcement about the full closure of the facility or what BAE might do with the property.
London-based military and aerospace contractor BAE Systems also maintains several other shipyards in the United States (Norfolk, Virginia, Pearl Harbor, Hawaii; Jacksonville, Florida, Mayport, Florida, and San Diego, California with significant contracts with the United States Navy.
This was much the same story with Jeffboat, LLC and their ship repair and contruction business.