Lockheed plans layoffs of 6,500 employees

In another move to reduce headcount and costs, Lockheed Martin announced Tuesday that it has launched a voluntary layoff program to reduce headcount by 6,500 employees. The reduction targets salaried employees that report to corporate headquarters and provide internal business services. The company said that the layoffs would help align the corporate staff with the needs of Lockheed Martin businesses, which have also been making cuts to staffing in the past year. Lockheed Martin is looking to reduce costs so that its products and services remain affordable and so that the company can improve efficiency and agility, the company said. This buyout program follows other reductions including up to 1,500 employees at Aeronautics business, 1,200 employees at Space Systems and the company’s buyout of 600 senior executives earlier this year. Depending on how many volunteer for the layoffs and other budget considerations, the company will decide whether it needs to make involuntary layoffs. Lockheed Martin ranks No. 1 on  list of the largest government contractors.