NEWTOWN,PA–Lockheed Martin will close its Space Systems operations here by mid-2015 as part of a nationwide cost-cutting strategy, the company announced Thursday.
Company-wide, the workforce will be reduced by 4,000 positions, a total of about 2,000 through the closure of Newtown and three other facilities, and the others through efficiency programs.
According to the company, about 1,050 people work at the Newtown site. Some of the workers will be offered positions at company facilities in Valley Forge and Denver, CO.
“Reducing our workforce of dedicated employees and closing facilities are among the most difficult decisions we make,” said Marillyn Hewson, Lockheed Martin's CEO, in a prepared statement. “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.”
Besides Newtown, Lockheed Martin facilities in Akron, OH; Goodyear, AZ; and Horizon City, TX; along with four buildings on the Sunnyvale, CA, campus will be closed.
The closures and ongoing efficiency initiatives will result in the elimination of a total of 4,000 jobs in the company's Information Systems & Global Solutions, Mission System and Training, and Space Systems business areas by the end of 2014.
Lockheed Martin said in a statement: “These actions are in response to continued declines in U.S. government spending.”
In Newtown, all program work and some employees will be moved to other Lockheed Martin facilities to increase efficiency and reduce costs.
Space Systems and IS&GS will transition work to its Denver, CO, and Valley Forge, PA, facilities. The Corporation is reviewing additional potential sites where MST work may be transferred, including its facilities in Owego, NY, and Orlando, FL. Plans should be finalized early next year, according to the company.
Since 2008, Lockheed Martin has reduced overhead costs, cut capital expenses, cut 1.5 million square feet of facility space and reduced its workforce from 146,000 employees to 116,000.
The facility closures announced today will shrink the company's footprint by almost 2.5 million square feet. Affected employees will receive job placement assistance and severance benefits, according to Lockheed Martin.
Headquartered in Bethesda, MD., Lockheed Martin is a global security and aerospace that had net sales of $47.2 billion in 2012.
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