defense-aerospace.com
all the defense and aerospace news
defense news
aerospace news

Lockheed Martin Astronautics to Cut Costs, Reduce Work Force



;DENVER --- Lockheed Martin Astronautics announced plans today to reduce its work force while pursuing a number of initiatives to become more cost competitive. Overall employment will be reduced by 1,200, or about 10 percent of the total work force. The plan includes a 30 percent reduction in management positions. While the total work force reductions will take place gradually over the remainder of 1999, the management reductions will be accomplished by the end of June. The company will, however, continue hiring in certain areas to maintain an appropriate skill mix.
;More than 300 of the 1,200 planned reductions have already been achieved through attrition since the beginning of the year. Attrition is projected to continue accounting for a portion of the total planned reductions. Employees who qualify for the company's existing voluntary layoff policy may further minimize the number of layoffs necessary.
;"In January, we began the Astronautics Competitive Transformation (ACT) process to ensure that we become the best value supplier of launch vehicles and space systems for our commercial and government customers. We said then we would announce the specifics of the plan by the end of the first quarter and we have met that schedule,'' said Dr. Raymond S. Colladay, Astronautics president. "Work force reductions are a painful part of this effort, but we are committed to minimizing the number of reductions that come through layoffs.''
;Other cost cutting initiatives include property consolidation, asset reductions and initiatives that will streamline production, manufacturing and engineering processes throughout the enterprise. The company has placed its Deer Creek Canyon headquarters building near Denver on the market for sale and intends to consolidate operations at its Waterton facilities southwest of Denver.
;Astronautics also expects to sell at least 10 percent of company assets to free up space they occupy while reducing costs of inventory and maintenance.
;"We have taken a detailed look at the entire organizational structure, size and skill mix to make appropriate reductions throughout the enterprise,'' added Colladay. Each organizational change and process improvement will be carefully monitored to verify that it will enhance process reliability for Mission Success. The company will provide professional outplacement support services, including resume assistance, job counseling, employment research, fax and copy machines, telephones and computers.
;Astronautics is one of the operating units of Lockheed Martin's Space & Strategic Missiles Sector headquartered in Bethesda, Md. Astronautics designs, develops, tests and manufactures a variety of advanced technology systems for space and defense. Chief products include interplanetary spacecraft and other space systems, space launch systems and ground systems.

-ends-


Lockheed Martin Astronautics to Cut Costs, Reduce Work Force