recommended reading

Lockheed Martin’s IT unit announces voluntary layoff program

John Amis/AP file photo

Lockheed Martin Corp. announced a targeted, voluntary layoff program for midlevel employees working at the company’s Information Systems & Global Solutions unit.

In a memo sent to employees on Jan. 31 and posted on career news website Dice.com, Patricia Lewis, Lockheed Martin’s vice president for human resources at the Information Systems and Global Solutions business unit, told employees that the company was offering the program as part of an “ongoing affordability initiative.”

Lewis said IS&GS was offering qualified middle managers (Level 5 and Level 6 in the unit’s civil, defense and national organizations as well as centralized functions) the opportunity to leave the company with severance benefits. Employees have until Feb. 28 to nominate themselves for the program and will be notified on March 8 if their requests have been accepted.

A Lockheed Martin spokeswoman told the Washington Post that the company aimed to reduce its workforce by 300-350 employees. However, the company still may lay off employees if enough of them don’t volunteer for the program, according to the memo obtained by Dice.

The layoffs may be linked to the division’s poor financial results. During Lockheed Martin’s fourth quarter conference call on Jan. 24, the company said the unit had seen a 14 percent year-over-year reduction in sales due to a shrinking federal information technology budget. Though the prospect of across-the-board cuts from sequestration have been unsettling government contractors, Chief Executive Officer Marillyn Hewson said that the company was not factoring it into their 2013 forecast but did note that it could occur as the “default outcome if negotiations [failed] to produce an agreement.”

Other major contractors have taken measures to reduce their workforce in the face of a tightening defense budget. Boeing Co. announced layoffs at a Texas based facility in January, the same month General Dynamics cut workers at a Stryker production facility in Alabama and reported $2 billion in losses in the fourth quarter of 2012. 

Threatwatch Alert

Thousands of cyber attacks occur each day

See the latest threats

JOIN THE DISCUSSION

Close [ x ] More from Nextgov
 
 

Thank you for subscribing to newsletters from Nextgov.com.
We think these reports might interest you:

  • Modernizing IT for Mission Success

    Surveying Federal and Defense Leaders on Priorities and Challenges at the Tactical Edge

    Download
  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

    Download
  • Effective Ransomware Response

    This whitepaper provides an overview and understanding of ransomware and how to successfully combat it.

    Download
  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

    Download
  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

    Download

When you download a report, your information may be shared with the underwriters of that document.