THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Saturday, September 24, 1994 TAG: 9409240282
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY CHRISTOPHER DINSMORE, STAFF WRITER
LENGTH: Medium: 66 lines
Newport News Shipbuilding announced an administrative restructuring to workers Friday that reflects the company's downsizing.
The restructuring reduces the number of executives reporting directly to Pat Phillips, the shipyard's chairman and chief executive, and William P. Fricks, president and chief operating officer, to seven from 13. The changes were effective immediately.
Phillips outlined the changes in a letter to yard employees dated Thursday and delivered Friday.
``These changes are being driven by a declining workload and new demands placed on our operations by a broader product mix,'' Phillips wrote. ``Given our reduced roll, consolidation will permit us to use our remaining resources more efficiently.''
Newport News Shipbuilding is shrinking in the face of falling orders from the Navy for nuclear-powered aircraft carriers and submarines. The Peninsula yard has said it will reduce its payroll to between 14,000 and 15,000 by the end of 1996 from the slightly more than 20,000 it has today. In the mid-1980s it employed nearly 30,000.
To make up for the lost work, the yard is trying to develop new lines of business in Navy ship repair, commercial ship repair and construction, and foreign military shipbuilding.
The restructuring consolidates the yard's operations into seven areas - construction, engineering, purchasing, administration, marketing, finance and legal.
``This is a structure for a 15,000-employee company rather than a 30,000 employee company,'' said Jack Schnaedter, yard spokesman. ``It fits in more with where we want to go as a more diversified, but smaller company.''
George A. Wade, who oversaw submarine construction, was named vice president of construction. James A. Palmer, who handled carrier construction and overhaul, was named vice president of engineering. Thomas C. Schievelbein, formerly vice president of strategy and naval program development, became vice president of administration. W. Greg Cridlin, who was developing commercial ship repair and construction, became vice president of marketing.
Purchasing, finance and legal will be overseen by the executives now in charge of those areas.
Units that will no longer report to the top executives are human resources, information services and communication, which were consolidated under administration; nuclear engineering and technical services, consolidated under engineering; and trades/manufacturing, consolidated under construction, said Jack Schnaedter, yard spokesman.
Executives in charge of those areas, while no longer reporting to the yard's top executives, will continue to have many of the same responsibilities they always did, Schnaedter said.
``While we regret the impact this restructuring will have on some individuals, the sacrifices called for during these difficult times must be shared at all levels of the company,'' Phillips wrote. ILLUSTRATION: Graphic
Shipyard Changes
Divisions Before
Divisions After
For copy of graphic, see microfilm
KEYWORDS: DOWNSIZING LAYOFFS NEWPORT NEWS SHIPBUILDING by CNB