Cubic Corp. will cut two percent of global workforce

SAN DIEGO (CNS) – San Diego-based defense contractor Cubic Corp. announced Wednesday it will consolidate its Defense Systems and Mission Support Services divisions and cut around 2 percent of its global workforce.

The new Cubic Global Defense business segment will allow the company to consolidate manufacturing, supply chain, finance, human resources and information technology functions worldwide, which could add up to $15-16 million in annualized pre-tax savings in the company’s 2016 fiscal year, according to Cubic.

“Today’s restructuring announcement reinforces our commitment to improving the business by eliminating redundancies to create a more efficient and responsive organization,” said Cubic President and CEO Bradley Feldmann.

“These changes are necessary to align our organization with our goals for profitability and growth in the future,” he said.

Cubic said it will incur a pre-tax charge in the second quarter of fiscal year 2015 of about$6 million, but estimates cost savings for the balance of the year will result in the restructuring having a neutral impact on its earnings per share.

Cubic, which employs around 7,800 workers, provides realistic combat training systems, secure communications, operations, maintenance, technical and other support services for the U.S. and allied nations. It also has a transportation division that makes passenger payment systems.