Article: Northrop Grumman to Cut Jobs on Defense Spending Slowdown

Good news for the stockholders, not so good news for the affected employees. 

By reducing employees, Northrop Grumman lessens potential losses due to paying out more than it takes in because of the slowdown in define spending. Instead of paying its employees a slightly lower salary Northrop Grumman prefers laying people off. See the Four Percent Solution that I previously suggested where a 4% reduction in costs is achieved with a 4% pay cut instead of a 4% (500 people) lay-off. 

Northrop Grumman to Cut Jobs on Defense Spending Slowdown - Seeking Alpha