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Lockheed cuts 1,200 jobs
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March 29, 1999: 7:59 p.m. ET
Denver-based astronautics unit to cut 10 percent of staff to reduce costs
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NEW YORK (CNNfn) - Defense and aerospace company Lockheed Martin Corp. said Monday its Denver-based space systems unit will cut 1,200 jobs, or about 10 percent of its workforce, through the end of the year.
Lockheed Martin Astronautics, one of six divisions of the Bethesda, Md.-based company and a specialist in space and defense systems, said the job cuts are the outgrowth of a plan launched earlier this year to cut costs.
"In January, we began the Astronautics Competitive Transformation process to ensure that we become the best value supplier of launch vehicles and space systems," Raymond Colladay, the president of the astronautics division, said in a prepared statement.
"Work force reductions are a painful part of this effort, but we are committed to minimizing the number of reductions that come through layoffs," Colladay added.
Thirty percent of the job cuts will come in management positions, and more than 300 of the total reductions already have been achieved through attrition, the company said.
The astronautics division plans other cost-cutting efforts, including the sale of 10 percent of its assets to reduce its maintenance and inventory costs.
Astronautics is a contractor for the Titan and Atlas space launch vehicles, and develops the Atlas rocket used in the launch of satellites. Its space systems division is engaged in classified space and ground support defense systems.
Shares of Lockheed Martin (LMT) fell 5/16 to 38-9/16 on the New York Stock Exchange Monday after the announcement.
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Lockheed Martin
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