The Strategist

Lockheed Martin Is Losing Defense Contracts and Employees

03/09/2016 - 14:05

Division for the production of aviation equipment of military-industrial corporation Lockheed Martin has announced the upcoming reduction of 1 thousand jobs. The program, which will take place on a voluntary basis, should help maintain competitiveness of the company, which missed recent large contracts.

Mark Doliner,
Mark Doliner,
1-thousand jobs cut, which accounts for 0.8% of the total number of employees, will affect middle managers of Lockheed Martin aviation unit, which produces, among other things, military transport aircraft Hercules C-130, F-16s, F-35, F -22A and other aviation equipment. According to Lockheed Martin’s press release, the military-industrial contractor, largest in the world by income, will offer voluntary layoffs in seven of the facilities, including the US Air Force base "Edwards" in California. As explained by Lockheed Martin itself, these cuts are necessary for the company’s aviation division to become "competitive in the future market; the reduction will help provide business prospects for the company customers and align the infrastructure with their requirements."

Meanwhile, the announcement of the cuts was preceded by reports that Lockheed Martin was not included in the list of the seven major partners. This month, the US Air Force selected them to implement the multi-billion dollar program for production of a new generation of bombers B-21 in conjunction with the main contractor Northrop Grumman. A month earlier, Lockheed Martin withdrew its lawsuit filed last year. The case considered the company’s fail to obtain Pentagon’s contract to manufacture 17 thousand light general-purpose all-terrain vehicles for the Army and the US Navy for $ 6.75 billion. The contract eventually was granted to Oshkosh Corporation.

Earlier in 2015, NASA decided to bar Lockheed Martin from contract for the cargo delivery to the International Space Station, according to The Wall Street Journal citing people familiar with the situation.

According to the publication, the decision to refuse had been taken in the summer, but was officially announced later. Lockheed Martin filed an application for participation in CRS-2 program (commercial cargo replenishment) in March 2015, offering taking up deliveries for Jupiter spaceship. The system was be put into orbit using "Atlas 5" rocket, allowing to deliver 6.5 kg of payload to the ISS. However, NASA managers had found this program too costly and abandoned the corporation’s services.