Itt Division In Brevard Will Furlough 60

March 14, 1986|By Catherine Hinman of The Sentinel Staff

MELBOURNE — ITT Defense Communications Division in Cape Canaveral was to lay off 60 employees today, the first work-force reduction at the division in its five- year history of otherwise steady growth at the Cape.

''It's just a softening of the market,'' Al Perry, director of division operations, said Thursday.

The division manufactures communications equipment for the Defense Department. Perry said that certain projects the division had anticipated working on have been delayed. He said he expects the programs to continue eventually.

Today's layoffs are not related to the shutdown in mid-February of ITT Telecom in Cape Canaveral, which caused the loss of about 100 jobs, Perry said. The Telecom operation was closed because parent company ITT Corp. decided to drop plans to develop and market its System 12 telephone switching system in the United States. ITT Corp. took a loss of $105 million in discontinuing the program and laid off about 1,600 ITT employees nationwide.

The Cape Canaveral Defense Communications Division was established in 1981 to become the Nutley, N.J.-based division's first high-volume production facility. Since 1981, employment had grown to 420. Most of the expansion took place in 1984, Perry said.

The Defense Communications Division employs 1,700 people nationwide. Last year New York-based ITT Corp. reported a profit of $294 million, after allowing for the System 12 losses, on sales of $20 billion.

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