Updated January 27th, 2024 at 14:06 IST

Lockheed Martin plans 1% job reduction in cost-cutting drive

The job cuts will affect positions across all of Lockheed Martin's business and enterprise operations.

Reported by: Business Desk
Lockheed Martin | Image:Lockheed Martin
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Lockheed Martin job cut plans: Lockheed Martin announced on Friday its intention to reduce its workforce by 1 per cent throughout the year as part of a strategic effort to trim costs and enhance operational efficiency, according to a company spokesperson.

The job cuts will affect positions across all of Lockheed Martin's business and enterprise operations. The company indicated that its cost-saving measures will encompass hiring freezes and voluntary separations.

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Image Credits: Lockheed Martin

Headquartered in Maryland, the defence contractor currently employs 122,000 individuals globally, as stated on its website. These cost reductions are expected to facilitate Lockheed Martin's digital transformation initiatives.

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During the company's post-earnings conference call on Tuesday, Lockheed Martin CFO Jay Malave discussed the focus on cost reduction within the direct cost base, stressing supply chain optimisation, factory productivity, and efficiencies driven by the 1LMX transformation programme.

Lockheed Martin recently forecasted its 2024 profit below Wall Street expectations, citing supply chain disruptions in its largest aeronautics segment, responsible for manufacturing F-35 jets.

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Despite heightened orders for US defence firms amid rising tensions in various regions, including between China and the Philippines, the conflict between Russia and Ukraine, and ongoing tensions in the Middle East, the sector is grappling with pandemic-related labour and supply chain disruptions.

The decision to implement job cuts aligns with a broader trend across various industries, including the technology sector, where companies are restructuring and reducing costs to navigate ongoing challenges.

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(With Reuters Inputs)

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Published January 27th, 2024 at 09:06 IST