Lockheed Martin Making Cuts, Closing Buildings at Sunnyvale Campus

By Associated Press
|  Friday, Nov 15, 2013  |  Updated 8:39 AM PDT
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Lockheed Martin Making Cuts at Sunnyvale Campus

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A sign at the main entrance of Lockheed Martin Aeronautics Company in Fort Worth, TX.

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Lockheed Martin is cutting 4,000 jobs, about 3.5 percent of its workforce, as the defense contractor continues to look for ways to lower costs amid reduced government spending.

The cuts include 200 jobs that will be trimmed at the firm's Sunnyvale facility.

"In the face of government budget cuts and an increasingly complex global security landscape, these actions are necessary for the future of our business,'' CEO Marilyn Hewson said Thursday in a statement.

Across-the-board spending cuts by the federal government have helped trim U.S. budget deficits. Budget negotiators in Congress are holding talks centered on find ways to cut spending and tax breaks to replace the automatic cuts that started earlier this year that are slamming the Pentagon and domestic agencies.

Bethesda, Md.-based Lockheed Martin Corp. provides components for, and is a subcontractor to, the Patriot missile defense system. It also makes F-35 and F-16 fighter planes. Lockheed will close plants in Goodyear, Ariz.; Akron, Ohio; Newtown, Pa.; and Horizon City, Texas; as well as four buildings at its Sunnyvale, Calif. campus, by mid-2015, eliminating 2,000 jobs.

The company current employs 6,400 people in the Silicon Valley. It's not clear what will become of the four buildings once they're closed. Lockheed Martin says they could be demolished or sold.

No other Bay Area facilities will be affected.

Another 2,000 positions will be cut in its information systems and global solutions, mission system and training, and space systems units by 2014's end.

Lockheed Martin said it will shift work and some employees to facilities in Denver and Valley Forge, Pa. The company is also reviewing other possible plants to which it could relocate programs, including facilities in Owego, N.Y. and Orlando, Fla.

Lockheed Martin said it has cut its workforce to 116,000 employees from 146,000 since 2008.

Last month the company said that revenue would decline "slightly'' next year on likely federal budget cuts.

Shares dipped 5 cents to $137.21 in morning trading. The stock is up 49 percent this year.

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