SAIC to Cut Annual Costs by $350 million

Tysons-based Science Applications International Corp. has announced it will cut $350 million in annual costs by reducing staff and facilities saving more in its purchases, according to the Washington Post.

SAIC is currently splitting the business into two separate companies, a $4 billion company to handle services and a $7 billion IT company.

The smaller company will retain the name SAIC, while the IT company will be named Leidos—as in kaleidoscope.

The Post reports that SAIC has already trimmed about 800 indirect employees who typically work in areas like human resources, accounting and payroll since the split was announced last year.

SAIC has warned 150 employees at their Falls Church campus on Arlington Boulevard that they will be laid off in May.

The SAIC employees, who worked on a contract for Advanced Information Technology Systems, were given a 60-day notice on March 22, company spokeswoman Jennifer Gephart said in a statement.

The contract ends on May 22. General Services Administration's Federal Systems Integration and Management Center, the company who gave SAIC the contract, gave the contract to another company.