Lockheed Martin Corp. (LMT) disclosed plans for a voluntary
layoff program for which 6,500 U.S. employees will be eligible at
its corporate headquarters and in its enterprise business services
segment, a move the aerospace and defense company said was intended
to align its corporate staff with the needs of its businesses.
The cuts follow the recent work force reduction of about 3,300
employees in the aeronautics, space systems and other segments
earlier this year. Lockheed said it will determine the need for
further involuntary cuts after gauging the participation in the
most recent plan.
The reduction should help the company improve its profitability
and pricing, though the space-systems business faces an uncertain
future with the pending closure of major projects and the federal
government looking to trim costs. Meanwhile, NASA has designated
Lockheed's four-person space capsule, dubbed Orion, as the likely
vehicle to take future astronauts beyond Earth's orbit, a decision
that could lock in billions of revenue over the next few years.
Under the terms of the offer, volunteers will receive a
severance package to leave the company in the fall. The company
also said the earlier reduction of 350 executive positions will cut
costs by about $350 million over the next five years and $105
million a year after that.
Shares were off 38 cents at $78.02 after hours and have climbed
5.89% over the past 12 months through the close.
-By Lauren Pollock, Dow Jones Newswires; 212-416-2356; lauren.pollock@dowjones.com