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November 14, 2013

Lockheed Martin cutting 4,000 jobs, but none in Johnstown

BETHESDA, Md. — Lockheed Martin is cutting 4,000 jobs, about 3.5 percent of its workforce, as the defense contractor continues to look for ways to lower costs amid reduced government spending.

Its a move that will close four Lockheed plants nationwide and layoff employees at numerous other locations but will spare their Richland Township location, Lockheed spokesman Ken Ross said.

“Johnstown will not be impacted,” he added.

“In the face of government budget cuts and an increasingly complex global security landscape, these actions are necessary for the future of our business,” CEO Marilyn Hewson added Thursday in a statement.

Across-the-board spending cuts by the federal government have helped trim U.S. budget deficits. Budget negotiators in Congress are holding talks centered on find ways to cut spending and tax breaks to replace the automatic cuts that started earlier this year that are slamming the Pentagon and domestic agencies.

Bethesda, Md.-based Lockheed Martin Corp., maker of Patriot missile defense system and the F-35 and F-16 fighter planes, will close plants in Goodyear, Ariz.; Akron, Ohio; Newtown, Pa.; and Horizon City, Texas; as well as four buildings at its Sunnyvale, Calif. campus, by mid-2015, eliminating 2,000 jobs.

Another 2,000 positions will be cut in its information systems and global solutions, mission system and training, and space systems units by 2014’s end.

Ross said the moves were the result of an extensive review into cost-saving measures for Lockheed, which has cut its workforce from 146,000 in 2008 to 116,000 this year.

Earlier this year, the company closed its Industrial Park Road global supply chain facility and transferred many of those workers to Maryland and other locations.

Its Lockheed Martin AeroParts facility in Richland, which employed more than 340 workers as of this summer, is among a list of facilities spared by the cuts, Ross noted.

Others aren’t as lucky, it seems. Lockheed will shift work and some employees to facilities in Denver and Valley Forge, Pa. The company is also reviewing other possible plants to which it could relocate programs, including facilities in Owego, N.Y. and Orlando, Fla.

Last month the company said that revenue would decline “slightly” next year on likely federal budget cuts.

Shares added 62 cents to $137.88 in afternoon trading. The stock is up 49 percent this year.

 

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