Will Government Cuts Lead to Defense Industry Layoffs?
Lockheed Martin Corporation (NYSE:LMT), suffering from business headaches, goes the route of hemispherectomy with heavy-handed employee terminations. Lockheed announced Wednesday its intention to cut 600 workers from their Mission Systems and Training Division, according to Reuters.
“This action is necessary to address continuing challenges in our business environment, including continued uncertain program funding, delays in contract awards, and an extremely competitive market,” said Keith Little, Lockheed spokesman.
The biggest defense contractor in the United States, Lockheed has already cut 30,000 employees since 2008, bring personnel down to 116,000 from a previous height of 146,000. Lockheed is hardly alone. Layoffs have been a popular trend in defense contractors, according to Reuters, as companies prepare for over $1 billion worth of spending cuts in the next ten years.