Lockheed Martin Job Cuts: Economic or Political?

In an Email to WABE, Lockheed Martin spokesman Johnny Whitaker says “normal attrition has accounted for most reductions to date.”

Whitaker says the cuts are part of the normal ebb and flow of Lockheed-Martin’s business. Not all cuts will come from the C-130 program.  And even with 550 fewer positions, the Marietta plant will employ about what it did in 2009.

So why announce job cuts now?

“This is a demonstration.  He’s putting his money where his mouth is,” says Bill Spriggs, a Virginia-based government contract lawyer and consultant. The “he” Spriggs is referring to is Bob Stevens, Lockheed Martin’s CEO. 

When across-the-board federal spending cuts were announced, known as sequestration,  Stevens gave speeches about what that would mean to the defense industry.

“He then went up on the Hill and testified, saying that sequestration would have a terrible impact and that he was obliged by law to announce layoffs even in anticipation of sequestration,” Stevens says.

Johnny Whitaker, the Lockheed Martin spokesman, says the job cuts announcement wasn’t planned—it came after a reporter specifically asked.  He says the company doesn’t know what effect sequestration might have on the Marietta facility. 

Even so, the layoffs have politicians’ attention. 

After speaking to the Gwinnett Chamber of Commerce Thursday, Gov. Nathan Deal addressed sequestration’s effects on Georgia.

“Lockheed, of course, is not sure what the future of their plane building capacity is going to be and the demand from the government.   So we’re in a great period of uncertainty right now.”

What is certain is the C-130J remains popular. 

The company says it has a backlog of 65-orders.