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[i]With retirement of the space shuttle program expected next year after just nine more flights, NASA's managers Thursday announced the first major round of job losses, saying 160 contractor workers would face layoffs Friday, the first of up to 900 jobs that will be lost between now and the end of the fiscal year. "Tomorrow, we have a layoff of about 160 people on the team," shuttle Program Manager John Shannon told reporters. "Between tomorrow and the end of September, we will reduce the program by about 900 people. They are primarily manufacturing team members. We have delivered the last pieces of hardware that those team members produce and we don't keep them on the roles. And that is in order to get our budget down to the marks and the assumptions we made early on. So we will start tomorrow and continue with the workforce reduction we had outlined." Several hundred jobs will be lost to attrition and some employees will transfer to other contractors or projects. The rest will be layoffs. Shannon would not say what companies will absorb the initial round of job reductions. "Not all of the companies have notified their employees so I don't want to get real specific," he said. "But it's primarily for manufacturing and vendors." The shuttle program employs about 1,600 NASA civil servants across the space agency and 13,800 contractors. Production of major components such as external fuel tanks, built by Lockheed Martin, and solid-fuel boosters, built by ATK, is winding down as the program nears retirement.[/i]
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