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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