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Lockheed Martin to cut 4,000 jobs

Lockheed Martin to cut 4,000 jobs
CNN
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Thursday, November 14, 2013 - 10:58am

Closure includes Horizon City location

Defense contractor Lockheed Martin is cutting 4,000 jobs and closing four plants, blaming a decline in U.S. government spending for the layoffs.

The company said the locations to be closed are in Newtown, Pa.; Akron, Ohio; Goodyear, Ariz.; and Horizon City, Texas. Between them they have 2,000 jobs. In addition it will close four buildings on its Sunnyvale, Calif., campus, eliminating another 2,000 jobs.

"Reducing our workforce of dedicated employees and closing facilities are among the most difficult decisions we make," said CEO Marillyn Hewson. "In the face of government budget cuts and an increasingly complex global security landscape, these actions are necessary for the future of our business."

The company is particularly dependent on U.S. government spending. According to company filings, its federal contracts were worth nearly $39 billion in 2012, which represented more than 80% of its overall revenue. It announced it would temporarily furlough 3,000 workers during the shutdown of the federal government in October.

But Lockheed Martin has been reporting improved earnings, and its shares are up nearly 50% so far this year. Shares were slightly higher Thursday on the layoff announcement.

Since 2008, the company has cut 30,000 positions, or about 20% of its global staff, reducing total employment to 116,000.
 

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