Lockheed Martin's (NYSE:LMT) Space Systems Company announced today that it would eliminate approximately 1,200 positions out of its 16,000 strong workforce by year-end.
The company said it would be reducing middle management by 25%, with significantly smaller percentages in other levels and disciplines. Overall, the cuts represents a 7.5% reduction in the business' total workforce.
The company singled out three sites that would be impacted the most: operations in Sunnyvale, California, the Delaware Valley region of Pennsylvania, and Denver, Colorado, where several major programs are transitioning out of development.
Joanne Maguire, executive vice president, Lockheed Martin Space Systems, said, "In today's economic environment, we have two choices: make painful decisions now or pay a greater price down the road. This is a difficult but necessary action to improve efficiencies and make our business more competitive going forward. We will remain relentlessly focused on achieving operational excellence and mission success for our customers as we position to deliver more affordably in the future."
The company will offer voluntary layoffs for eligible employees in an attempt to reduce the number of involuntary layoffs, as well as provide career-transitioning support to those who are laid off.
Shares of Lockheed Martin are trading up 1.24% at $79.84.