The first effects of automatic federal spending cuts at Tobyhanna Army Depot will result in the layoffs of 418 people.
The depot cited decreased funding and work volumes Monday as it reported the layoffs of industrial trades and electronics contract workers will take place in three phases, including the elimination of 95 positions on Friday. On April 15, there will be 216 people dismissed and 107 will be released April 30, the depot reported.
"We have assessed our workload thoroughly and we do not have funding or sufficient work to justify retention of these personnel at this time," Col. Gerhard Schroter, depot commander, said in a statement.
Last week, Tobyhanna announced that more than 5,100 people who work at the Monroe County defense installation must take off 22 nonconsecutive days without pay between late April and Sept. 30. The depot's budget is being cut by $309 million - 35 percent of its government funding - through the end of the fiscal year under budget sequestration.
"This is impacting qualified employees with a number of skill sets," said Teri Ooms, director of Institute for Public Policy and Economic Development, a regional research and analysis group.
The affected employees work for URS Corp., a San Francisco-based engineering, construction and technical services company. Pam Blum, a spokeswoman for URS, declined to comment. Ms. Ooms said URS work for the Energy Department also has been curtailed by sequestration.
Contract workers at Tobyhanna perform many of the same functions as full-time government employees. Many contract employees live in the region and military installations use them during peak periods. Their presence helps protect the full-time workforce from layoffs when orders drop.
Sequestration started March 1, resulting from 2011 budget talks that ended a national debt-ceiling stalemate. The across-the-board cuts are part of $1.2 trillion in potential automatic spending reductions over the next decade, including about $500 billion in military spending.
As sequestration took effect, Tobyhanna reported last week that about 150 workers took early retirement on March 1.
The mood at the depot is apprehensive, spokeswoman Jackie Boucher said.
"People are pretty much concerned and waiting to see what will happen," she said.
The conclusion of U.S. military involvement in Iraq, scaled back operations in Afghanistan, and accelerated completion of equipment repairs have reduced the workload projections this year, the depot report. Because of sequestration, there is no Army funding for depot maintenance in the last two quarters of the current fiscal year, according to Tobyhanna.
About 2,000 Tobyhanna workers are Lackawanna County residents and about 1,400 live in Luzerne County. The sprawling complex, which includes 2 million square feet of shop space, is the military's main facility for the repair and recalibration of electronics and communications equipment.
"Many of the people coming to work at Tobyhanna are coming from the northeast quadrant of the state," Ms. Ooms said. "This will limit the amount of spending they will do in other areas and that ripples through the economy."
About 700 contract workers are employed at Tobyhanna, according to the facility. Total employment at the depot, which exceeded 5,400 last spring, has dipped below 5,000, the installation reported.
Contact the writer: jhaggerty@timesshamrock.com