Business

November 15, 2013

Lockheed Martin to consolidate facilities, reduce costs

Lockheed Martin announced Nov. 14 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.

By mid-2015, the Corporation plans to close its operations in Newtown, Penn.; 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 Corporation’s Information Systems & Global Solutions, Mission System and Training, and Space Systems business areas by the end of 2014.

As 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.  Details on each facility and the consolidation activities can be found on the company website.

“Reducing our workforce of dedicated employees and closing facilities are among the most difficult decisions we make,” said Marillyn Hewson, Lockheed Martin 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.”

The actions follow a strategic review of the Corporation’s current facility capacity and future workload projections and are part of a continuing affordability initiative. Since 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 to 116,000.

The facility closures announced today 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 their transition.




All of this week's top headlines to your email every Friday.


 
 

 

Headlines January 30, 2015

News: Taliban claims responsibility for attack on Americans at military base near airport - The Taliban claimed responsibility Jan. 30 for a shooting incident at a military base attached to Kabul’s international airport yesterday that killed three American civilian contractors and an Afghan national, saying the attacker had infiltrated the ranks of the security forces. Commission...
 
 

News Briefs January 30, 2015

Military judge weighs restrictions on Gitmo female guards A military judge is deciding whether to continue restricting the use of female guards at Guantanamo. Navy Capt. J. Kirk Waits heard closing arguments Jan. 29 at the base in Cuba during a pretrial hearing for Abd al-Hadi al-Iraqi. Waits didn’t say when he will rule. Hadi...
 
 
Air Force photograph by 1st Lt. Jake Bailey

Cope South experts exchange knowledge, techniques

Air Force photograph by 1st Lt. Jake Bailey TSgt. Sam Bishop, center left, and SSgt. Jeffrey Stephens discuss propeller maintenance with Bangladesh air force maintainers, from the 101st Special Flying Unit, during exercise Cope...
 

 

Air Force names 2-star to lead F-35 Integration Office

With the initial operating capability date of the F-35 Lightning II quickly approaching, the Air Force appointed Maj. Gen. Jeffrey Harrigian as the director of a larger Air Force F-35 Integration Office, Feb. 1. In addition to gaining new leadership, the F-35 Integration Office will also grow from a staff of four to 12 and...
 
 
boeing-ana2

Boeing announces ANA’s commitment to more jetliners

Airline continues fleet modernization with Boeing airplanes Boeing and All Nippon Airways announced Jan. 30 the airline’s intent to purchase three 787-10 Dreamliners to add additional flexibility to the airline’s 787 fleet....
 
 
Air Force photograph by Scott M. Ash

Air Force risks becoming too small to succeed under sequestration

Air Force photograph by Scott M. Ash Air Force Chief of Staff Gen. Mark A. Welsh III testifies before the Senate Armed Services Committee Jan. 28, 2015, in Washington, D.C., as Commandant of the Marine Corps Gen. Joesph F. Dunf...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>