Lockheed Martin announces cutbacks and corporate shuffle

An internal reorganization — the second this year — and staff cuts at Lockheed Martin Corp. should not affect the company's contracts with government or private customers, a Lockheed spokesman said Thursday.

Bethesda, Md.-based Lockheed Martin announced immediate plans to "streamline" its Aeronautical Systems and Space Systems business units. They said the move would improve business operations, speed decision-making and focus resources on program execution.

The company expects to save $200 million and cut more than 2,800 jobs.

In fall 1999, Lockheed Martin announced a 2000-person reduction for its Marietta, Ga., facility. The company has faced poor financial results in the past year and has been trying to decentralize its operations.

Internal realignments historically do not affect the company's customers, said company spokesman Jim Fetig.

The Aeronautical Systems business will consolidate its organization and operations into a focused one-company structure named Lockheed Martin Aeronautics Company headquartered in Fort Worth, Texas.

The Space Systems business, which has experienced several failures of its launch vehicles during launches of U.S. military satellites, will establish a Lockheed Martin Space Systems Co. in Denver. The company's satellite manufacturing facility in Sunnyvale, Calif., and operations in Denver and New Orleans will report to that unit. The unit also lost a crucial bid from the National Reconnaissance Office in September to design the next generation of spy satellites.

Lockheed Martin Technical Services, Cherry Hill, N.J., is not expected to experience any changes. The company is responsible for NASA's Consolidated Space Operations Contract to streamline the space agency's ground infrastructure and information technology.

Featured

Stay Connected

FCW Update

Sign up for our newsletter.

I agree to this site's Privacy Policy.