Budget Decline Causes Lockheed Martin To Consolidate Facilities

The continued decline in U.S. government spending has forced Lockheed Martin to close several of its U.S. facilities in order to increase the efficiency of its operations and improve the affordability of its products and services.

According to company’s press release, by mid-2015, the Corporation plans to close its operations in Newtown, Pa.;Akron, Ohio; Goodyear, Arizona; and Horizon City, Texas; and four buildings on its Sunnyvale, California, campus.

As part of the consolidation, all program work and some employees will transition to other Lockheed Martin facilities, creating operational efficiencies and reducing costs. Space Systems and IS&GS will transition work to its Denver, Colo. And Valley Forge, Pa. facilities. The Corporation is reviewing potential sites to transition the MST work, including its facilities in Owego, N.Y. and Orlando, Fla., and expects to finalize plans in early 2014.  Details on each facility and the consolidation activities can be found on the company website.

"Reducing our workforce of dedicated employees and closing facilities are among the most difficult decisions we make," said Marillyn Hewson, Lockheed MartinChief Executive Officer and President. "In the face of government budget cuts and an increasingly complex global security landscape, these actions are necessary for the future of our business and will position Lockheed Martin to better serve our customers."

The actions follow a strategic review of the Corporation's current facility capacity and future workload projections and are part of a continuing affordability initiative. Since 2008, Lockheed Martin has reduced overhead costs, cut capital expenses, removed 1.5 million square feet of facility space and made the difficult decision to reduce its workforce from 146,000 employees to 116,000.

The facility closures announced today will further reduce the Corporation's operational footprint by nearly 2.5 million square feet of facility space and lower overhead costs.