The cuts come on top of 8,400 previously announced job cuts, largely related to the winding down of the B-2 stealth bomber program.
Northrop said it will take a $60 million charge for the cuts which will be completed by the end of 2000, the company said in a statement.
The company hopes to begin saving $300 million a year as a result of the cuts starting in 2001.
The problems mean Northrop is pushing back its goal of reaching $12 billion a year in revenue from 2002 to 2003.
Northrop Grumman (NOC) shares rose 7/16 to 69 1/4 on its announcement.
The company said it expects to add 2,500 employees to its information technology and electronics businesses by the year 2000. Northrop Grumman's total workforce should be about 46,000 in 2000, down from the current 54,000.
When the cost-reduction programs are fully implemented, the company's near-term operating margin rate goal will rise to 12.5 percent from the current 11 percent, Northrop Grumman said.
"These actions are necessary to insure that we meet the affordability requirements of our customers while continuing to add value for our shareholders," said Kent Kresa, Northrop Grumman chairman, president and chief executive officer, in a statement.
The company said it will create two new operating divisions from the restructuring.
The integrated systems and aerostructures sector will include its airborne early warning, electronic warfare, commercial aircraft and airborne ground surveillance units and will be based in Dallas.
William Lawler, who previously served as general manager of the military aircraft systems division, will become executive vice president of the sector. Former electronics and systems integration division general Manager John Harrison will help Lawler initially with the new division and will retire at the end of the year.
The electronic sensors and systems sector will combine Northrop Grumman's electronic systems division, its space-based infrared sensors and its electronic sensors and systems unit. It will be based in Baltimore.
Former electronic sensors and systems General Manager James Roche will become president of the new division.
The company also said it plans to merge its information technology and services business with its Logicon subsidiary in Herndon, Va.
Written By Tiare Rath