Lockheed Martin Slashes 4,000 Jobs

Lockheed Martin Slashes 4,000 Jobs

Lockheed Martin is slashing 4,000 jobs as it trims its workforce to match the cuts to defense spending associated with sequestration.

The cuts equate to 3.5 percent of Lockheed Martin’s total work force as the defense contracting giant closes four plants over the next two years. The plants that will be closing in Akron, Ohio; Goodyear, Ariz.; Newtown, PA; and Horizon City, Texas.

“In the face of government budget cuts and an increasingly complex global security landscape, these actions are necessary for the future of our business,” CEO Marilyn Hewson said Thursday in a statement.


Defense industry leaders have warned that budget cuts associated sequestration will threaten defense industry job. However, other analysts question whether this is a natural progression as the U.S. ends its war in Afghanistan.

Lockheed Martin as a whole isn’t necessarily suffering. The company’s stock dipped five cents Thursday, but overall the stock is up 49 percent on the year.

However, the company’s workforce is getting smaller. Over the past five years, Lockheed Martin’s workforce has dropped from 146,000 to 116,000. Leaders also expect the company’s revenue to drop next year as the cuts continue to bite into DoD’s budget.

However, the company still leads the most expensive acquisition program in U.S. history — the Joint Strike Fighter.

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There is a missing factor in the story. There are some ‘must win’ contracts coming up for the Primes, and they are cutting overhead and costs to make their financial ratings better to both stockholders and The Customer. Lower your overhead and labor costs (by expensive older workers retiring, sometimes with encouragement) and your bid becomes far more attractive. Unfortunately, there is no metric for risk to the execution of the program by fewer people with less experience.

Yeah, they cut jobs because sequestration took the US military budget back to 2007 levels. But wait, back in 2007 the defense industry employed 40,000 (that’s 4,000 x 10 for the math illiterate) more people than it employes now. Hmm, Lockheed’s story doesn’t hold much water, does it. Not that they’d ever lie. Noooooo. Not a defense contractor. Hell, they’re paragons of virtue. Just ask any of their paid mouth pieces.

Just look away at all of the cutting the military itself has done right? Or ignore inflation or instability in the industry.

Where the hell did you get 40k for the number of employees in “the defense industry”? The DoD alone employs 100k. Quit spewing garbage. And regardless of what they employed previously with those numbers, 4k people losing their jobs in a single cut like that sucks. Spoken by someone in a small company (less than 50) that’s facing the same impacts at about the same scale.

The headline should read:

“Lockhead Martin, those brilliant folks who brought us the F-35 and LCS, are slashing 4,000 high paying, high benefit American jobs here in the US so that they can keep their stock price up so that the executives can earn their multi-million dollar bonus’s this year,. After all how can they possibly keep their executives motivated with only bonus’s in the six figures? But thankfully none of the 10,000 jobs outsourced to India and China will be touched. Lochhead really is looking out for them-we should be thankful they care so much for our poor Indian and Chinese friends.”

Well what do you expect from a company who makes a mere Net sales of $12.1 billion for fourth quarter 2012 and $47.2 billion for 2012…how could they possibly pay those salaries????

Really?

I hate American CEO’s (most of them) they are the virmin of the world. Nothing against American people, it’s the corporate culture that would make vultures jealous.

Anyway, Lockmart, I HOPE those jobs aren’t engineers. Those guys and gals are jewels, which other nations pay HUGE sums for to educate, so don’t throw them away. By the way, with the new long range bomber coming up, why is this happening?

But hey, I’m all for needless government teet jobs getting canned.

They’re likely manufacturing and engineering jobs.

Lockheed Shenzhen, here we come!

“I wonder if we can get H-2 visa engineers from India and China, or find some exchange students that’d want to stay here. They we can pay them as much as female engineers and get more work done for less.”

Of course they are engineers. And while engineers are generally employable, these people are concentrated in places where finding a suitable job at the same level of pay is a real problem. And this has been going on in the US defense industry for four years now. This is not about corporate culture. It is about national priorities and long term vision.

CE, they are engineering jobs that are being cut. I know because I am one of them. I sweat blood for the last 18 years along with my peers only to be handed a slip of paper with a staggered lay-off plan. Where you are wrong is that the engineers of the world would not be “jewels” were it not for the blue collar “get your hands dirty” folks that apply that engineering to something real. It breaks my heart to see these folks get the shaft so that some executive “penguin” can get his/her 6 figure bonus and “golden parachute” (can you say Linda Gooden?).

You wanted obama, you got him. Sequestration was his idea.

Does anyone here understand capitalism? It appears not.….

I just wanted lower taxes and less regulations so I could move manufacturing back from China to the United States. It’s gonna be awfully hard to beat slave labor though…

:(

My father got his layoff notice in the ‘90s. We were one of perhaps thousands (maybe tens of thousands?) of families in the Southern California region that lost an defense industry breadwinner (though we were a dual-income family, electrical engineer & chemist). Suffice to say he was never the same afterwards.

I don’t know if you’re an electrical engineer, but you may have to consider moving into a different field. Medical devices, maybe? I wish you luck in the future.

Personally, I’m more worried about the Chicoms who are writing bad code for our weapons right now. They aren’t nearly so disorganized, and are a helluva lot smarter. We will outsource to anyone. You look inside any Boeing or Lockheed building and what you’ll see is not a factory full of machinery turning aluminum and steel into aircraft. Instead you will see huge warehouses full of parts manufactured in other countries being assembled into aircraft and other weapons by Americans who are lowest on the scale for skills and pay. They are not just outsourcing touch labor, for those who want to blame unions. They are primarily outsourcing engineering and other professional jobs. Which is going to put more money in the pockets of these multinational defense companies, outsourcing a job that makes $15 an hour or one that makes $50 an hour? Or don’t look, don’t worry, keep your heads in the sand and hope someone takes care of you. After all, that’s the new American way.

“Lockheed Martin as a whole isn’t necessarily suffering. The company’s stock dipped five cents Thursday, but overall the stock is up 49 percent on the year.” Do you ever read, or are you a write only device?

Can’t read, can’t figure out how to reply, not really worth talking to, are you?

American CEO’s? I don’t think any of them are actually Americans.

I’m sorry about your family’s difficult times, but frankly I wish I had left in the ‘90s. That’s when it really started sucking. No one can say what could have been, but from my perspective your father is probably lucky to have left when he did, although I can certainly understand if he doesn’t feel that way.

I’d like for my children and my grandchildren not to have to pay for trillions of dollars of debt racked up by an out of control federal government during my lifetime. The world doesn’t just magically get easier ten years from now.

It was more difficult for my dad than for the family. We retrenched and survived on one paycheck, and after a few years of looking for a job in a much smaller aerospace industry he jumped to a different industry that still needed electrical engineers. Pay isn’t quite the same, but a paycheck commensurate to your skills is better than what happened to others. Being jobless for years when you were laid off at the top of your game probably does a number to you mentally.

That’s the reason I mention this to Nuff Said. If you’re an electrical engineer, time to find a place that could use your skills. If your skills are more on the aerospace side…I’m not sure what the options are. Good luck to you, Nuff Said!

Since Reagan the deficit has only trended upwards. The interest payments will soon be equivalent to the GDP of small countries.

good now that you changed over from the falcon to the raven raptor,i olny have four thousand jobs available,and i;ll geuss there is maoe than four thousand of you correct.ok then the four thousand with the highest test scores gets the job.and my the best man win.

In this business, always it has been, and always it will be. Best wishes to those affected the most.

Connections, not test scores.

Or cost, maybe.

“Bid for your jobs as independent contractors. May the cheapest junior engineer win!”

Only thing American is the dollars they are paid in.

American CEO’s (right wing, quarterly profit chasers) need to be shot instead of the Trayvons etc. A trayvon doesn’t harm many, a Loclheed/Boeing CEO not only harms thousands of families and billions of dollars out of your economy (to line the pockets of a few rich old white men), but SELLS AWAY your entire aerospace FUTURE. Guess what, there are millions of jobs in aerospace, HIGLY paying, and EVERY powerful nation is investing in it, while the sleeping has been US, lets a few PRIVATE people kill those jobs. THOSE are strategic job, nothing to do with profits or shareholders.

Yeah, why the HELL doesn’t the US, which arguably has the best and brightest, and the most, do anything about it? Even a drunken sailor has ‘some sort of PRIORITIES in life, and long term VISION, so why doesn’t the premier superpower for the last 70 years have this? I mean, your country fails governance 101. How the hell difficult can it be to legislate as to STIMULATE these essential sectors? You guys have it and give it all away, while the Russians/Chinese/Brazilians etc would sell BOTH their nuts to gain that kind of employment/exports.

I’m sorry to hear that Nuff Said, and I’m sorry you live in a country that’s too IGNORANT to hone/use your talents, talents that came from your parents and hundreds of thousands of dollars of education. Other countries KILL to get that know how, and your politicians and ceo’s couldn’t give less, they, like Romney, want their third car elevator. This bond between engineers and machinists is the most sacred bond there can be. Everybody can make cars, but aircraft/satellites and rockets are the most difficult to do. Hope you find employment quick. And I know you are deep enough not to blame this on unions etc. That’s smoke and mirrors. May those CEO’s get eaten one day by the 99%. Literally.

Stan, your ignorance doesn’t pain me anymore, it humors me. Without explaining too much, YOU and your ILK are THE reason the US is now on a waterslide down. Sequestration was a ‘compromise’ because the idiots with a combined IQ of 200 (the 100 tea party fascists from 2010) wouldn’t do the debt ceiling etc. That’s why there is sequestration. And I would be damned to support taking away the defense side while letting young people starve.

That’s where you are WRONG. Like any other country with half a brain, we see these sectors as ESSENTIAL. No country, other than the silly USA, would ALLOW a few old idiot CEO’s, to THROW AWAY ONE CENTURY of aerospace knowledge. A business? F that. Those 1% stockholders are worth less than the run over dog on the street. The Wright Brothers are rolling in their grave, as is Kelly Johnson, Wilhem Boeing and many other US industrials. Sometimes I think the only thing that ever kept America going strong, or becoming stronger, was the strong influx of recent arrived Europeans. Without them, you seem lost and susceptible to idiocy.

On a grander scale, it’s the movement of manufacturing and the un-diversification of the American workforce.

Shareholders are only concerned with the quarterly dividend, not how you make revenue. And since no CEO actually /owns/ their company anymore, it’s a matter of being outvoted. It would take a new generation of activist CEOs and less-sociopathic hedge funds to focus on long term corporate viability, instead of the corporate Viking culture of the ‘80s, ‘90s and ’00’s.

Indeed, it’s a national security thing; but nobody sees it that way, and certainly not the aerospace guys. To them it’s business and money.

Not sure if corporate rivals are hiring, but give it a shot. Hopefully you can land on your feet!

Sadly, I think the People’s Republic of China would love to pick your brain. At least they’ll feed you.

I want to know how he decided these CEO’s are “conservatives” or even Americans? The CEO of Lockheed, Bob Stevens, is definitely a liberal. Buffet — liberal. CEO of Alcoa — Germany. Coke’s CEO — Ireland. CEO of Pepsi — India. CEO of AIG — British.

Honestly, I’m actively trying to leave the defense industry, but at this point have too much taint. I can’t get an interview anywhere outside. That’s one hell of a turnaround from the way things used to be. It’s not just me. A lot of engineers are fed up and trying to get out and almost all have the same story. If you know someone on the inside that can vouch for you it always helps, but even with that there’s lots of suspicion.

Our century of aerospace knowledge is already gone. Hell, Ben Rich retired in 1990 and the job of airplane designer was retired with him. There’s no one to carry on that knowledge and there hasn’t been for a quarter century now. I think the guys who designed the F-23 are still around, but they’ve got to be close to retirement age now. We haven’t had a rocket designer in this country since von Braun was forced out of NASA. SpaceX did ok with literally no experience at all to base their design on. Mike Griffin really f’ed up NASA designing their Ares rockets with no experience designing so much as a coffee pot. But we just go on pretending everything is fine.

Then where the hell are those corporate douche bags you call politicians? The same with Obama, at least he has a bit of vision and tries to help, then he has 535 disgusting stooges to blokc him. Hate him or love him, at least he doesn’t actively SUPPORT outsourcing and profit above all mentality.

These things are called policy strategy, and need to come from up TOP. Guess what Lockheed, you want all those fat pentagon dollars? Invest more, and do with LESS margins (that’s a PREMISE the government could SET). No questions asked, my way or the highway.

This isn’t starbucks or for example a shopping mall that’s outsourcing, these are HIGH TECH top value engineering aerospace companies. Those decisions are TOO VALUABLE to let to the ceo’s and stockholders.

ps: lots of this can be righted through sheer tax police. Tax ‘profits’ etc higher and people will see the value in work.

IT’s Lockheed and Boeing I’m after. And their scumbags. You knw it. Nothing liberal about it. And Dfens, don’t be an idiot, I’m not talking liberal/conservative vis a vis gay marriage etc. I’m talking about corporate mentality: tomorrow’s profits, vs being a century old company and trying to put another century on top of it. Won’t happen when you fire all the brains in order to sooth some suburban house wive whores.

Haha. nonsense. If anybody gave raise to fascism, it was Wall street from the 20’s on, same for Communism. Look it up. And I see more resemblance with fascism in the US governing structure than I see in Europe. Close buddies with big business and screw the little guy, union busting etc. Fascist playbook. Read up on history please.

See, the whole point I’m trying to make is this. You lay off good engineers, that have been educated through the public money, and their skills honed through pentagon tax dollars. And then you throw them out to live under a bridge. MEANWHILE Fing Boeing outsources everything to Japan/Asia and even EUROPE (are we LESS expensive than America? NO neither is Japan). So all this outsourcing created even more engineering unemployment, while billions are taken out of the economy. MEANWHILE Boeing can’t get it’s ELECTRICAL systems to work and is 20 BILLION OVER BUDGET AND 4 YEARS LATE 787. IRONIC isn’t it? G damn idiots on that side of the pond. So instead of employing your own, getting yuor money’s worth out of public tax dollar investments, and honing skills even more, they 1. increase UNemployment, 2. billions over budget and lose their competitive standing because of lack of skills. 3. INcrease US trade deficits, whereas airplanes are the only thing you still export, but hey, 4. Those skanks in the suburbs have more capital gains now.

Just get it over and start over as a nation, this isn’t going anywhere but down. Ugly to watch.

I figure that’s a product of the engineering market…only chemical and petroleum engineers are in high demand at the moment.

The problem is likely global, based on how the publicly owned companies are judged by the carrot of quarterly earnings.

In contrast, family owned companies or companies still majority privately-owned are somewhat more…long term. It will take years, decades or generations of activism to name and shame hedge funds one-by-one to encourage them to stop favoring the quarterly earnings report over jobs and actual company health. It might be hard to motivate the youth though: the youth are inevitably fans of the anarcho-syndicalist commune and have given up on market structures.

Concerned Once again your showing you don’t know much about the situation. Of course most people don’t. Outside of what people want to hear the news is a 16 second blerb or a 20 word Tweet or title on a website. Most people are simply tired of it and no one trust the news media anymore.…well apparently you and Europeans do…

My view.

Anyways. Sequestration was either the single dumbest idea from the people who screw crap up or the greatest political victory in a decade or more.

The US has to cut cost. However cutting is bad to many.

Obama suggested the sequester. So when it all went to hell he got.

1) Public relations freebe of the century-Blame the Republicans for literally everything and have them stand there like it made sense.

2) Shattered Defense Industry and US Military-something Liberals have wanted for years. This also plays into the hands of many foreign powers who wish to see the US not only humbled but also weaker because this means the US would be forced to seek outside help in everything…which won’t really come. In effect stopping the US from acting alone unless its life or death. (This will cause a lot of death down the road because we tend to act genocidal when threatened.)

3) Cuts across the board which while being blamed on republicans the Democrats in charge of the PARTY know has to happen. That it makes their base furious and stops them from thinking clearly is only a plus. This was necessary because Obama would lose massively if he tried to cut it and most likely would be unable to.

The above basically guaranteed the Democrats victory. And gives them a massive beat stick while taking care of what they needed. The republicans in congress played right into their hands.

WHAT THE HELL ARE YOU TALKING ABOUT.

Listening to you spout off buzzwords from MSNBC is getting damn old.

At least make sense in your rambing on 1%, EVIL CEO’s, Bush, wallstreet, etc.

Hate to break it to you European but CEO’s are the same the world over. Their job is to maximize profit and minimize costs. The corporate environment at any given time dictates the avenue to pursue to achieve those results. Short term layoffs to meet a specific program goal or long term restructuring to impact the corporate bottom line. Regardless, their job is to please the corporate board and their stockholders.

You’re absolutely correct. Look at Leo Apotheker…kind of wish he’d stayed in Europe to destroy the European IT industry.

That said, CEO’s have no interest in the long term prospects of a company. They are put there by the board of directors to maximize profit, nothing more.

In family-owned businesses or private ones, CEO’s are accountable to the family, who tend to want profits just as much as the next board of directors, but families tend be a little more long-range in their investment, rather than being able to sell at a drop of a hat after a stock trick allows them to pocket a few millions before moving on.

I don’t know about where you’re from, but here in the US there is very little difference between “liberals” and “conservatives” when it comes to putting money in their bank account. Obviously I’m not the only one who noticed the leadership of the supposedly Communist, Soviet Union, were substantially more equal than their comrades when it came to standard of living and the same thing is currently true of Communist China too. In fact, usually countries that have little in the way of capitalist values seem to have the largest disparity between the rich and poor, not the smallest. Certainly as the US goes down the path toward socialism our gap between rich and poor has grown exponentially.

No, they aren’t the only engineers in demand. What I’m saying is, I put in for a defense job, I get a call. I put in for a non-defense job, I get crickets chirping. To some extent that is to be expected. Work on airplanes is always going to be more directly applicable to work on other airplanes, for instance. On the other hand, the way things were years ago any company outside of defense was more than happy to snap up an engineer with a defense background. Now there is significantly more skepticism.

There is a form of taxation that is designed specifically to keep domestic companies from outsourcing work. It is called a tariff. It is a sales tax on goods or services outsourced beyond a countries borders. The founding fathers of the US made tariffs the primary source of income for our federal government. In 1913 we passed an amendment to the US Constitution that allowed taxation of states “without regard to any census or enumeration” that supposedly means the federal government can tax US citizens directly. Funny thing is, US Citizens don’t have the lobby power of a nation like China, so now our government taxes the hell out of us, and gives China “most favored nation” trade status.

Well here again Obama and the SOD will be putting more people out of WOTK, which means Less Income, Social Security and Medicare taxes being PAID in and now more people on GOVERNMENT Assistance so that means more money going OUT.. Thank Obama and the DemocRATS need to good back to a real school not Harvard or Yale that teaches real economics. But then they know better than real working people and the Professors know even less how the economy works

We all hear about how bad capital gains taxes are, but decades back when the Republicans really were Republicans they made sure capital gains taxes soaked anyone who made a quick profit off of stocks. Capital gains taxes were a lot lighter if you took long term earnings. This caused corporations to look more long term, because big one year dividends did no one any good. It seems to me many of our current financial problems have solutions, and all we have to do is look at how our government was run only a few decades back to find them.

Skepticism why? The negative reputation of defense program overruns casts long shadows over its engineers?

If you’re an aerospace guy, I suppose your only alternate options are aerospace-related. It’s a bummer.

“that have been educated through the public money”

What public money? There’s student loan debt, so it’s more like indentured servitude.

So you’re saying reform the tax code to dis-incentivize short-term behavior?

So many comments are so ignorant of the way the corporate world works and who is benefitting. 1. the company is not a “single person’. The company is also not “the CEO”. The stockholders, many are retired people that count o their stock holder dividents to supplement their income… and you could be too if you stopped the whinning and thought about your retirment years a little more logically. The CEO bonus and other compensation is recommended by the board of directors, but has to get stockholder approval before it can go forward… so blame those old retired folks for the CEO pay and bonuses..

it is the ‘the company”. Next come the financial managers, they are just liek any other employee.. they are hired to maximize the profits and minimize the expenses… that is their sole function, and their yearly salary increases, just like yours, depends on them doing the best job they can, so it is not “the company” that is squeezing the apple to get the most juice as it can.. ti is the financial managers for each and every departmart. Yes, the CEO establishes a path, but it is up to the managers of each department to make it work at or under budget. And as far as foreign work goes, the F-16 is sold in many countries aroud the world.. part of that process is to give up workload to the in country companies… so yeah, they do acquire the pats from the overseas market but they are also selling the much higher end item back to the same country. So which do you want… keep all the parts in the US and have no ouerseas sales or give up a little workload to get a much larger sales base and the workers make more money by having a larger throughput?

Over Half of the Engineers where I work are here on a green card..and a work permit..got a so called engineer degree..just because they were mechanics..that qualifies a foreigner as an engineer.

No PE’s required?

jet rep, you have no idea how the CEO and other officers of the corporation, including the board of directors, get their juicy compensation and bonuses and stock awards. It’s not by the grandmas and grandpas and little old retirees out there who hold a paltry, minuscule, amount of the shares of stock int the company. It’s the big boys — the investment firms, brokerage houses, banks, and the retired CEOs, officers, and directors of the company and their living relatives, and the current CEO, officers, and directors of the company who own the majority shares in the company. They are the ones who decide who gets nominated for positions, what the bonus and stock plans that get put forward are going to be, what the compensation plans put forward are going to be, and what the stockholders are going to see in the proxy material. Then they vote their shares for what they decided, knowing their position will win, because they already hold the majority of voting shares.

It’s a rigged game, jet rep. Your retired friends out there never stood a chance. They get their little dividends once a quarter if they’re lucky, and maybe they get some stock appreciation, but they don’t have any say in how the company is run — that’s for the players, the big boys, always has been.

LM is just the first to start. Boeing, Northrop Grumman, Raytheon, and the rst will follow starting first quarter next year. Now if only the pentagon would do the same.….….….

It’s because these non-defense industries are looking for design engineers, aka “the guys who actually do drawings and CAD models”, and Dfens is a systems engineering, aka “the guy who writes specifications”.

“MEANWHILE Fing Boeing outsources everything to Japan/Asia and even EUROPE”

no dude you’re totally wrong because back in the KC-X slapfight we heard all about how Boeing is like Totally 100% American and stuff

As usual you flap your bill without knowing anything. One might expect for as many times as I’ve said that Systems Engineers are a fabrication of the defense industry specifically conjured up to impede progress with process that you’d clue into the fact that I’m not one of them, but one can only hope you do better with pictures.

It’s not so bad. Hell, I love airplanes and I’m good at designing the parts I do get to design. The tough part is finding a niche that keeps me from being sidelined with respect to my technical skills. There are a few places left to hide.

Lockheed is ridding themselves of many of its older more expensive workers and these situations are used by the company to cut its salary costs. LM will be more risky to deal with as it loses it’s high skilled workers and trades them in for cheaper less experienced employee’s. They are really downsizing on the backs of seasoned skilled workers… There is also a bias within the company to try and remove its East Coast presence…

Damn straight. Run the capital gains rate up to 75% or whatever it used to be on big, short term gains. That stops the demand for short term gains by hitting the investors in the pocket. It would also put an end to all the market speculation and a lot of the big swings in the stock market brought on by computer trading. Here again, it’s not rocket science. All you really have to do is look back at how we used to run the country vs. what we do now.

Yes, I know a lot of people who have been caught up in that mess. Lockheed’s management has already stripped the company of all their manufacturing equipment, now they are stripping it of its experience base. When they are done, anyone left holding stock in that company will be holding an empty bag of air. Sadly, the DoD is not only not preventing these people from doing this kind of slow corporate raiding, they are encouraging them. But hell, I’m sure if people cared about crap like this, reliable news sources such as DOD Buzz would be covering it.

I’m sure the folks in Akron, Ohio; Goodyear, Ariz.; and Horizon City, Texas will be glad to know they are all part of the Eas Coast presence.

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