The U.S. defence contractor, Lockheed Martin, has announced that it will slash 4,000 jobs as well as close and consolidate several of its facilities in an austerity move.
Lockheed Martin said the reduction in the workforce part of the company's effort to increase operations efficiency and improve the affordability of its products and services. The company also announced that its austerity move is in response to continued U.S. government spending decline.
"Reducing our workforce of dedicated employees and closing facilities are among the most difficult decisions we make," said Marillyn Hewson, the company's 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."
Lockheed Martin plans to close its operations in Newtown, Pennsylvania; Akron, Ohio; Goodyear, Arizona.; and Horizon City, Texas, along with four buildings in its Sunnyvale, California campus by mid-2015. The closures will result in the removal of 2,000 positions.
The company's ongoing operational efficiency initiatives will also result in the reduction of 2,000 of its workforce in the Corporation's Information Systems and Global Solutions (IS&GS), Mission System and Training (MST) and Space Systems business areas by the end of 2014.
The company produces aircraft and defense weapons systems. However, with strategic alliances with big companies such as Cisco and Microsoft it is also becoming a key player in cyber security industry.
Lockheed Martin's biggest sector is creating the F-35 jet, which contributes to 30 percent of the company's sales and is the only one of its five departments not being impacted by the recent austerity move.
As part of the company's consolidation efforts, all program work and some employees will transition to other Lockheed Martin facilities, which are expected to create operational efficiencies and help to reduce costs.
Lockheed Martin has already slashed 30,000 positions since 2008 and reduced its workforce to 116,000 down from 146,000, and has also got rid of around 1.5 million square feet of space.
