Defense Firms Warn of A-12 Layoffs: The...

Defense Firms Warn of A-12 Layoffs: The nation’s two largest defense contractors said they might lay off as many as 8,000 workers if the government scraps a Navy program to build a radar-evading Stealth attack jet. The announcements came after the Pentagon said Tuesday that McDonnell Douglas Corp. and General Dynamics Corp. had until Jan. 2 to show how they can salvage the $4.78-billion contract to build the A-12 Avenger. Last Friday, Secretary of Defense Dick Cheney said he was ready to give up on the plane, contending that delays, cost growth and management problems were “intolerable.”