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Lockheed Martin Makes Cuts In Bethesda Office | Business

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Lockheed Martin Makes Cuts In Bethesda Office
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More than 600 executives have accepted financial incentives to leave the Bethesda, Md.-based military contractor.

"The executive reductions will help align the number of senior leaders with the overall decline of about 10,000 in the employee population since the beginning of last year, cut overhead costs and management layers and increase the corporation's speed and agility in meeting commitments," the company said in a statement.

Lockheed, along with the rest of the industry, is restructuring its operations and finding ways to cut costs to meet the Pentagon’s order for greater efficiency. After two costly wars in the Middle East and a global recession, growth in U.S. defense spending is limited.

Sales to the U.S. government in 2009 accounted for 85% of the company's total net sales.

Along with workforce reductions, Lockheed has also reorganized its business and is planning to sell its Enterprise Integration Group and Pacific Architects and Engineers unit.

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