Sony cancels Christmas Day release of ‘The Interview’

NASSCO rescinds 665 layoff notices

SAN DIEGO — General Dynamics NASSCO confirmed Thursday that it has rescinded more than 650 layoff notices issued in February at its San Diego shipyard as sequestration budget cuts loomed.

NASSCO Shipyard

The “fiscal cliff” disproportionately threatened San Diego County because the military and defense industry is responsible for 1 in 4 jobs in the area. Above, shipbuilders work on a propeller at the Nassco yard in San Diego. (Don Bartletti, Los Angeles Times / June 3, 2011)

The pink slips to 375 employees and 290 subcontractors were pulled back after Congress last month gave the armed services more flexibility in their operations and maintenance budgets.

It had been believed that sequestration’s automatic cuts would gut the Navy’s maintenance budget.

“We received information from the Navy on repairs, contracts and maintenance that made us feel like we wouldn’t have to go through with the layoffs at this time,” NASSCO spokeswoman Sarah Strang told City News Service.

San Diego political and business leaders have lobbied the Pentagon to keep its ship maintenance schedule intact. The ship building and repair industry is a major component of the economy for the area’s waterfront.