Lockhead Martin Aeronautics division to cut 1,500 employees

[News_Editor]

Lockhead Martin Aeronautics division to cut 1,500 employees

2011-07-01 21:09:22 GMT+7 (ICT)

BETHESDA, MARYLAND (BNO NEWS) -- Lockheed Martin on Friday announced that around 1,500 employees across its Aeronautics business area will be let go as part of the company's "affordability" plan.

Reductions may occur across the enterprise, with the greatest impacts occurring at the larger sites, and an organizational assessment will determine how to trim the organization with a target reduction of approximately 1,500 employees, the Bethesda, Maryland-based company said. According to the Lockhead Martin, the plan would improve affordability of its products and increase operational efficiency.

Currently, Lockheed Martin has about 28,000 employees at its principal Aeronautics sites in Texas, Georgia and California and at six smaller locations in as many states. On a worldwide basis, the global security company employs about 126,000 people with 2010 corporation sales from continuing operations reaching $45.8 billion.

"Bold and responsible action is necessary to meet customer expectations and reduce our costs," said Ralph D. Heath, executive vice president, Lockheed Martin Aeronautics. "We are realigning the organization to be more efficient and agile, and a reduction in force will enable us to meet the requirements of our changing business environment."

In addition, Lockheed Martin said it would offer eligible salaried employees the option of a "voluntary layoff" to minimize the number of involuntary layoffs.

"We will use a disciplined process to review every organization and position, considering all factors rather than making arbitrary reductions," the company said, adding that they expected the greatest impact to be on employees in higher level labor grades. Employees eligible for voluntary layoffs will be notified in August, the company announced, while an involuntary reduction in force is to begin in mid-September.

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