Lockheed Martin cutting 4,000 positions and closing several US facilities
Lockheed Martin announced Thursday that it will close and consolidate several
of its U.S. facilities and reduce its workforce by 4,000 positions as
part of its effort to increase the efficiency of its operations and
improve the affordability of its products and services. “These
actions are in response to continued declines in U.S. government
spending,” the company said in a press statement.
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 company's Information Systems &
Global Solutions (IS&GS), Mission System and Training (MST), and
Space Systems business areas by the end of 2014.
part of the consolidation, all program work and some employees will
transition to other Lockheed Martin facilities, creating operational
efficiencies and reducing costs. 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.
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,” said Marillyn Hewson, Lockheed Martin chief executive
officer and president.
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
facility closures announced Thursday 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