Study: DoD Sequestration Cuts Would Slam Federal Workforce, Delay Pain To Contractors

Large defense companies and industry associations have claimed that the threatened sequestration cuts to the federal budget would cause an immediate hit to the bottom lines of contractors, their workforces and consequently the broader economy if the cuts kick in as planned on Jan. 2. A new study  finds that's not necessarily so, but that on the other hand, cuts to federal civilian employee payrolls would happen almost overnight.

In the Defense Department, 108,000 civilian full-time equivalent jobs would likely disappear right away, but sequestration's effects on most of DoD's contracted spending would take months or years to fully manifest themselves, according to a think tank's close examination of the Pentagon's 2013 spending plans and the law that mandates the automatic cuts.

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