Lockheed Martin and other defense contractors have begun scaling back or cancelling their plans to furlough employees after the Department of Defense brought a large number of its civilian employees back to work.
Over the weekend Defense Secretary Chuck Hagel said he was recalling most of the department’s civilians who’d been placed on emergency furloughs. The recalls are to begin this week for workers who contribute to the “morale, well-being, capabilities and readiness of service members.” The Pentagon is recalling 300,000 workers, according to NBC News.
Last Friday, Lockheed said it would furlough 3,000 employees because of the government shutdown, but on Monday said it would scale back that number to 2,400 because of the Defense Department’s recall. Meanwhile, United Technologies said Sunday it planned to cancel furloughs at its aerospace business.
A total of 800,000 government workers were furloughed when the shutdown began last week. With the Defense workers returning to their offices, tech companies supplying cloud services may be able to at breathe least a small breathe a sigh of relief. Businesses like Amazon, Microsoft and others that offer cloud services to government agencies at usage-based prices may not face as bad a hit in revenue as they were anticipating.