Now, Government Contractors Are Furloughing Workers
Lockheed Martin (NYSE:LMT), the world’s largest defense contractor by revenue, announced Monday that 2,400 workers would be furloughed, a smaller number than the 3,000 originally estimated. “As a result of Secretary [of Defense Chuck] Hagel’s announcement that most of the nearly 400,000 civilian Department of Defense employees have been deemed essential for national security, Lockheed Martin will reduce the number of employees who will be affected by government shutdown today,” the company said in a statement on Monday.
However, the statement also read, “the Department of Defense’s decision will not eliminate the impact of the government shutdown on the company’s employees and the business.” Contractors have warned that tens of thousands of people could be furloughed as the shutdown halts contract payments and awards.
So far, because of the furlough of civilian workers, Pentagon inspections on programs such as Lockheed’s F-35 Joint Strike Fighter and Sikorsky Aircraft’s Black Hawk helicopters have been paused. But Sikorsky and its parent company, United Technologies (NYSE:UTX), canceled all planned furloughs over the weekend.