Lockheed Martin to Cut 600 Jobs This Month

by Christopher Freeburn | October 17, 2013 10:57 am

Lockheed Martin to Cut 600 Jobs This Month

LockheedMartinLogo e1305045062401 Lockheed Martin to Cut 600 Jobs This Month[1]On Wednesday, Lockheed Martin (LMT[2]) said that uncertain economic conditions would force it to cut workers from one division[3].

The nation’s largest defense contractor indicated that it will eliminate 600 jobs this month. The cuts will come from its Mission Systems and Training Division, but are not due to fallout from the recent shutdown of the U.S. government, Reuters noted.

A company spokesman attributed the layoffs to delayed contracts, rising competition and lower government spending. The company’s workforce currently numbers about 116,000. That’s 30,000 fewer workers compared to 2008.

Last week, Lockheed Martin announced that it would furlough 2,400 workers due to the government shutdown[4]. The shutdown was ended on Wednesday with a political deal between Senate Democrats and Republicans.

In April, the company warned that sequester-mandated federal budget cuts[5] would cost it $825 million in previously forecast 2013 revenue.  Lockheed Martin trimmed 650 employees from its payroll during the first quarter.

Shares of Lockheed Martin rose slightly in Thursday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2010/08/LockheedMartinLogo-e1305045062401.jpg
  2. LMT: http://studio-5.financialcontent.com/investplace/quote?Symbol=LMT
  3. would force it to cut workers from one division: http://www.reuters.com/article/2013/10/16/us-lockheed-layoffs-idUSBRE99F1C820131016
  4. would furlough 2,400 workers due to the government shutdown: http://investorplace.com/2013/10/lockheed-martin-to-furlough-2400/
  5. warned that sequester-mandated federal budget cuts: http://investorplace.com/2013/04/lockheed-martin-will-lose-825m-to-sequester-cuts/

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