Lockheed to Close Akron Plant, 4 Other Locations
BETHESDA, Md. -- Lockheed Martin [NYSE: LMT] announced today that it will close and consolidate several of its U.S. facilities – including its plant in Akron --and reduce its workforce by 4,000 as part of its effort to increase the efficiency of its operations and improve the affordability of its products and services. These actions are in response to continued declines in U.S. government spending, the company said.
In addition to the Akron plant, where 500 are employed, Lockheed said it plans to close, by mid-2015, its operations in Newtown, Pa.; Goodyear, Ariz.; and Horizon City, Texas; and four buildings on its Sunnyvale, Calif., campus.
The closures will result in the elimination of 2,000 positions and ongoing operational efficiency initiatives will result in the elimination of an additional 2,000 positions in the corporation’s Information Systems & Global Solutions, Mission System and Training, and Space Systems business areas by the end of 2014, the company said.
As part of the consolidation, all program work and some employees will transition to other Lockheed Martin facilities, creating operational efficiencies and reducing costs. Space Systems and Information Systems & Global Solutions will transition work to its Denver and Valley Forge, Pa. facilities. The corporation is reviewing potential sites to transition the Mission System and Training work, including its facilities in Owego, N.Y. and Orlando, Fla., and expects to finalize plans in early 2014. Details on each facility and the consolidation activities can be found on the company website.
“Reducing our workforce of dedicated employees and closing facilities are among the most difficult decisions we make,” said Marillyn Hewson, Lockheed Martin CEO and president, in a prepared statement. “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.”
Since 2008, Lockheed Martin has reduced overhead costs, cut capital expenses, removed 1.5 million square feet of facility space and made the difficult decision to reduce its workforce from 146,000 employees to 116,000, the company noted in its announcement.
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. Affected employees will receive job placement assistance and severance benefits to assist their transition.
Lockheed Martin is principally engaged in the research, design, development, manufacture, integration, and sustainment of advanced technology systems, products, and services. The corporation’s net sales for 2012 were $47.2 billion.
SOURCE: Lockheed Martin Corp.
Published by The Business Journal, Youngstown, Ohio.
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