Lockheed Martin to close plants, lay off workers

Lockheed will close plants in Pennsylvania, Ohio, Arizona and Texas and reduced its workforce by 4,000 positions in response to declines in U.S. government spending.

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Lockheed Martin (Bethesda, Md., USA) announced on 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 company plans to close its operations in Newtown, Pa.; 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 company's Information Systems & Global Solutions (IS&GS), Mission System and Training (MST), 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 company 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," says Marillyn Hewson, Lockheed Martin CEO 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."

Since 2008, Lockheed Martin has reduced overhead costs, cut capital expenses, removed 1.5 million ft2/139,355m2 of facility space and made the decision to reduce its workforce from 146,000 employees to 116,000. The facility closures will further reduce the company's operational footprint by nearly 2.5 million ft2/232,258m2 of facility space and reduce overhead costs.