Aerojet-General Corp - 1990s Cutbacks

1990s Cutbacks

Aerojet announced a reorganization in May 1990. Its two Sacramento propulsion units were combined into the Aerojet Propulsion Division. Three other divisions were renamed: Aerojet Space Boosters, which was producing advanced solid rocket motors (ASRM) for the Space Shuttle, was renamed the Aerojet ASRM Division; Aerojet ElectroSystems, based in Azusa, California, became the Aerojet Electronics Division; and Downey, California-based Aerojet Ordnance became the Aerojet Ordnance Division.

Company Perspectives:

Aerojet, a GenCorp company, is a major aerospace/defense contractor specializing in missile and space propulsion, and defense and armaments. Since the company was founded in 1942, it has led the way in the development of crucial technology and products that have kept America strong and furthered man's exploration of space.

Aerojet's satellite technology was used to detect Iraq's Scud missile launches during the Persian Gulf War. Aerojet also supplied cluster bombs for the war effort; in 1994 it and the only other supplier, Alliant Techsystems Inc., were fined for price fixing related to these armaments.

In 1993, Aerojet unveiled a refueling system for natural gas vehicles. It used mobile fuel tanks constructed of high-tech composite materials. In the 1993 fiscal year, sales were $872 million, down from $1.1 billion, but they still accounted for nearly half of the parent company's total revenues. Aerojet employed 5,000 people in the early 1990s. The company trimmed 1,250 jobs in 1993; cutbacks at NASA resulted in the layoffs of another 650 workers in 1994.

Portions of the munitions business were sold to Olin Corporation of Stamford, Connecticut. In December 1994, GenCorp announced it would sell the rest of Aerojet as well. At the time, Aerojet had 1,350 employees at its electronics plant in Azusa, California, and 1,650 at its propulsion plant near Sacramento. The sale of Aerojet was not completed, however.