Lockheed Martin notified 600 employees from its Mission Systems and Training division that their jobs would be axed over the next two weeks. That represents roughly 4 percent of the division’s workforce. The unit provides global security systems engineering, software development, program management and supply chain solutions and logistics services.
The layoffs are just another in what’s been a long-running story. In February the company asked for voluntary layoffs among high-level engineers and managers tied to its Information Systems & Global Solutions (IS&GS) unit. Last month, the defense contractor placed an estimated 3,000 workers on furlough during the government shutdown.
Through these latest cuts, Lockheed is aiming to minimize the impact from uncertain government program funding, delays in awarding contracts and increased competition. Although some earlier actions, such as the furloughs, were a direct result of the government shutdown, the Mission Systems & Training cuts are purely business-related.
In the third quarter, Lockheed posted a 4 percent drop in revenues, to $11.3 billion, compared to the year-earlier period. Next year, net sales are expected come in slightly lower than this year’s performance, the company said in its earnings release.