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Thursday, Sep 21, 2023

National Technical Systems to Cut Workforce

National Technical Systems Inc. will lay off an unspecified number of its employees as it centralizes administrative functions and shares resources. The Calabasas-based engineering and testing services firm for the aerospace, telecommunications, automotive and energy markets expects annual savings of $5 million to $6 million. Chief Executive William McGinnis said the company is lowering expenses after doing a number of acquisitions the past few years. “We can now centralize many administrative functions and share resources among our locations more effectively, allowing us to streamline our organization and reduce our operating costs, including a reduction in personnel through both attrition and separations,” said McGinnis, in a prepared statement. Last week, the company reported a net loss of $298,000 (-3 cents a share) in its fiscal fourth quarter ended Jan. 31, compared to a net loss of $618,000 (-5 cents) for the same quarter a year earlier. Revenue rose 8.8 percent year to $43.8 million. The net loss incorporated a $451,000 non-cash tax adjustment to the company’s deferred tax accounts. In addition to the Calabasas headquarters, National Technical operates sites in Santa Clarita, 11 other states and Munich, Germany. The company did not specify where the reductions would take place.

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.

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