Lockheed Martin [LMT] yesterday said it plans to eliminate 1,500 jobs at its Aeronautics business area to improve the affordability of its products and boost operational efficiencies.
The pending job cuts, which are mainly targeted at high-level salaried employees, follows another job cutting action the company announced last month at its Space Systems business area, where 1,200 positions are being eliminated to also make its products more affordable and competitive.
At Lockheed Martin Aeronautics, which has about 28,000 employees, the company in August will offer eligible salaried employees the opportunity for voluntary layoffs. Involuntary reductions will begin in mid-September.
In the meantime, the Aeronautics business will do an organizational assessment to determine how best to trim the organization and where to do any realigning.
“Bold and responsible action is necessary to meet customer expectations and reduce our costs,” Ralph Heath, executive vice president for Lockheed Martin Aeronautics, said in a statement. “We are realigning the organization to be more efficient and agile, and a reduction in force will enable us to meet the requirements for our changing business environment.”
A spokesman for the Aeronautics business told Defense Daily that the organization’s hourly employees are already right-sized, having been reduced by about 100 jobs this year due to a decrease in F-16 aircraft production, less system design and development on the F-35 Joint Strike Fighter, and the ending of work on the F-22 fighter.
Lockheed Aeronautics’ largest sites are in California, Georgia and Texas, and it has smaller locations in six other states. Most of the job reductions will occur at the largest sites.