Summary
Lockheed Martin Corporation (LMT) announced on November 13, 2013, a significant restructuring plan involving facility closures and workforce reductions. This strategic move will impact approximately 4,000 positions across its Information Systems & Global Solutions (IS&GS), Mission Systems and Training (MST), and Space Systems business segments. The company plans to close specific leased and owned facilities in Goodyear, AR; Akron, OH; Newtown, PA; and Sunnyvale, CA. These actions are driven by a strategic review aimed at aligning organizational structure and cost structure with declining U.S. government spending and evolving market dynamics. Investors should note that these changes are expected to be substantially completed by mid-2015.
Key Highlights
- 1Lockheed Martin is implementing a plan to close facilities and reduce its workforce by approximately 4,000 positions.
- 2The workforce reduction will affect the Information Systems & Global Solutions (IS&GS), Mission Systems and Training (MST), and Space Systems segments.
- 3Specific facilities in Goodyear, AR; Akron, OH; Newtown, PA; and Sunnyvale, CA are slated for closure.
- 4These actions are a response to declining U.S. government spending and a changing competitive landscape.
- 5The company estimates a special charge of approximately $175 million (net of tax benefits) for severance costs, to be recorded in the fourth quarter of 2013.
- 6The special charge is expected to impact earnings by approximately $0.35 per diluted share.
- 7The restructuring is expected to be substantially completed by the middle of 2015.