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Lockheed to cut 1,600 jobs
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November 18, 1996: 3:21 p.m. ET
Defense giant to close 8 plants in bid to save $300 million a year
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NEW YORK (CNNfn) - Lockheed Martin announced plans Monday to cut 1,600 jobs and close eight plants as part of a restructuring aimed at saving $300 million annually.
"We are confident this consolidation will meet our goals to increase competitiveness, reduce costs to our customers, expand opportunities for our employees and enhance shareholder value," Lockheed CEO Norman Augustine said in announcing the move.
Lockheed said Monday's plans, set to take place by 1998, would generate $300 million in annual savings by 1999.
Plans call for closing plants in Manhattan, the Bronx and Great Neck, N.Y.; Bloomfield, Conn.; Rancho Santa Magarita and Glendale, Calif.; Paoli, Penn.; and Charleston, S.C.
However, the company said employees slated for lay off could seek transfers to other company plants.
Lockheed claimed that future employment growth at other plants would offset the planned job cuts.
The firm said Monday's moves will complete the consolidation of Lockheed businesses with the defense-electronics and systems-integration units of Loral, which Lockheed acquired earlier this year.
In a move unrelated to the Loral acquisition, Lockheed said it would also combine its aerostructures unit with several aircraft maintenance, modification and logistics businesses into a Greenville, S.C.-based group to be called Lockheed Martin Aircraft and Logistics Centers.
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