US defence giant Lockheed is trying to offset the effects of US military spending cuts on its business

Lockheed to cut 4 000 jobs worldwide

Defence giant Lockheed Martin will reduce its global workforce by 3 per cent, cutting 4,000 jobs worldwide to offset declines in US military spending.

About a half of the redundancies will affect workers employed at Lockheed’s US factories that were said to be completely shut down by mid-2015. In an announcement released today, the company said operations in Akron, the US state of Ohio, Newtown in Pennsylvania, Goodyear in Arizona and Horizon City in Texas will cease while further reductions will affect facilities in Sunnyvale, California.

Further drive to increase efficiency, the company said in a statement, will result in additional job cuts in Lockheed’s information systems and global solutions, mission system and training and space systems business segments.

“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.”

Multiple US military technology manufacturers have been forced to reduce their workforce in recent years as the USA, the world’s largest military customer, have been cutting down on its weapons purchases.

Lockheed, the prime supplier to the Pentagon which builds F-35 fighter jets, satellites, missile defence equipment and warships, said the latest cuts reflect continued efforts to bring down costs. Since 2008, the company has reduced its workforce by 30,000 employees to 116,000 worldwide and removed 1.5 million square feet of facility space.

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. Lockheed said the affected employees will receive job placement assistance and severance benefits to assist their transition.

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