USA: Lockheed Martin to Slash 4,000 Jobs

American defense contractor Lockheed Martin said that it will close and consolidate several of its U.S. facilities and reduce its workforce by 4,000 positions amid US Government’s budget cuts.

“Reducing our workforce of dedicated employees and closing facilities are among the most difficult decisions we make,” said Marillyn Hewson, Lockheed Martin Chief Executive Officer and President. “In the face of government budget cuts and an increasingly complex global security landscape, these actions are necessary for the future of our business and will position Lockheed Martin to better serve our customers.”

By mid-2015, the Corporation plans to close its operations in Newtown, Pa.; Akron, Ohio; Goodyear, Ariz.; and Horizon City, Texas; and four buildings on its Sunnyvale, Calif., campus. The facility closures will result in the elimination of 2,000 positions and ongoing operational efficiency initiatives will result in the elimination of an additional 2,000 positions in the Corporation’s Information Systems & Global Solutions (IS&GS), Mission System and Training (MST), and Space Systems business areas by the end of 2014.

As part of the consolidation, all program work and some employees will transition to other Lockheed Martin facilities. Space Systems and IS&GS will transition work to its Denver, Colo. and Valley Forge, Pa. facilities. The Corporation is reviewing potential sites to transition the MST work, including its facilities in Owego, N.Y. and Orlando, Fla., and expects to finalize plans in early 2014.

As explained by the company: the facility closures will further reduce the Corporation’s operational footprint by nearly 2.5 million square feet of facility space and lower overhead costs. Affected employees will receive job placement assistance and severance benefits to assist their transition.

Since 2008, Lockheed Martin has reduced overhead costs, cut capital expenses, removed 1.5 million square feet of facility space and made the difficult decision to reduce its workforce from 146,000 employees to 116,000.

Turbulent developments in the US defense policy, especially with respect to the recent budget crisis and Government shutdown, have considerably contributed to the growing employment uncertainty in the country. In October, Lockheed Martin identified around 3,000 employees for furlough as a result of the government shutdown. Furthermore, the number of employees affected was expected to increase weekly in the event of a prolonged shutdown.

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Press Release, November 15, 2013