Aerospace Firm Lockheed To Slash 1% Of Workforce To Cut Costs: Report

The defence contractor based in Maryland has a global workforce of 122,000 employees, as per information on its website

Global security and aerospace company Lockheed Martin is reportedly preparing to cut 1 per cent of its jobs over the duration of the year in an effort to cut overall costs and streamline operations. These job cuts will affect roles across all business and enterprise operations. The cost-cutting measures will encompass hiring freezes and voluntary separations, the news agency Reuters reported on Friday.

As per information on its website, the defence contractor based in Maryland has a global workforce of 122,000 employees. The cost reductions are intended to support the company in its digital transformation efforts.

"We're driving cost reduction in our direct cost base through supply chain optimisation, factory productivity, and also on 1LMX-driven efficiencies," Reuters quoted Lockheed Martin CFO Jay Malave saying in Lockheed Martin's post-earnings conference call on Tuesday.

Lockheed reportedly refers to its transformation program as 1LMX. On Tuesday, Lockheed projected its 2024 profit to be below Wall Street expectations, attributing it to supply chain disruptions in its largest aeronautics segment responsible for manufacturing F-35 jets.

Meanwhile, amid rising tensions between China and the Philippines, the ongoing conflict between Russia and Ukraine, and disturbances in the Middle East, US defence firms are experiencing a significant surge in orders. However, challenges posed by pandemic-related disruptions in labour and supply chains are impacting the sector.

These job cuts are happening as several companies across various industries implement layoffs as a cost-cutting measure, with tech companies being prominently affected. In the recent wave of job cuts within the technology sector, Salesforce, headquartered in San Francisco, is reportedly laying off approximately 700 employees, constituting about 1 per cent of its global workforce, as reported by the Wall Street Journal on Friday. Similarly, a few days back, tech giant Google also announced several rounds of fresh layoffs affecting employees across the world.