Lockheed Martin realigns business, anticipates job cuts in 2010

OWEGO, N.Y. - Lockheed Martin announced early in the week that it will be realigning its business base, and that more cuts at the Owego facility are inevitable in early 2010.

As part of the reorganization, most of the Systems Integration-Owego business, which is part of Electronic Systems, will merge with Lockheed's Maritime Systems and Sensors, or MS2, unit.

The ground vehicles line of business, which includes the Joint Light Tactical Vehicle (JTLV) program, will be realigned with Missiles and Fire Control.

The announced reorganization, according to Lockheed Chairman, President and Chief Executive Officer Robert Stevens, is necessary to make the business stronger and more cost competitive, but also noted, with regrets, that the realignment will displace some of their colleagues in Owego.

In a statement issued Monday by Stevens, he applauded the Owego team for working diligently to reposition the business following the termination of the VH-71 Presidential Helicopter program and cancellation of the CSAR-X competition.

"They (Owego employees) have sustained a high level of performance despite the elimination of nearly 1,000 jobs since the beginning of the year," he said.

The integrations also will mean improved affordability and cost competitiveness, as well as more closely aligned capabilities and customers, Stevens said.

In a telephone interview on Tuesday with Tom Greer, Lockheed Martin Owego spokesperson, it was emphasized that this action is merely an organizational restructuring.

"This does not imply that operations in Owego will be going away," Greer said.

Greer noted that MS2 has a plant in Syracuse, and Missiles and Fire Control has plants in Grand Prairie, Texas, and Orlando, Fla. Greer also added that it is too early to determine where the numbers will end up regarding staffing until they are further into the realignment process.

"We will be looking at the entire workforce, not just in Owego," Greer added. He attributed the loss of the VH-71 Presidential Helicopter and the loss of the CSAR-X competition as a driving force behind the restructuring that needs to take place to help the company stay competitive.

Lockheed in Owego cut approximately 1,000 jobs since the beginning of the year, with termination of the VH-71 presidential helicopter program, cancellation of combat search-and-rescue helicopter work and other lost business. The plant in Owego employs approximately 3,000 people, which is one of the lowest numbers of employees it has maintained since its transition from IBM to Loral, then to Martin Marietta, and the eventual merge into Lockheed Martin Systems Integration-Owego.

According to reports, the company has formed two teams to analyze competencies, redundancies, number of job reductions required and what the Owego plant will be called. The results of this analysis are expected to be announced in January.

In addition to the realignment, the following leadership appointments were announced that will take effect on Jan. 1, 2010, except for John T. Lucas, who will move into his new position on Feb. 1, 2010, when Kenneth J. Disken retires.

- Marillyn A. Hewson, 55, will leave her post as president of Systems Integration-Owego to become executive vice president of Electronic Systems. She will succeed Christopher E. Kubasik, who will become Lockheed president and chief operating officer.

-Orlando P. Carvalho, 51, will become president of MS2, succeeding Fred P. Moosally who previously announced his retirement. Carvalho is now vice president and general manager of MS2's operations in Moorestown, N.J.

- John T. Lucas, 49, will become senior vice president of human resources, succeeding Kenneth J. Disken, who is retiring.

- William L. Graham, 59, will become deputy to Information Systems & Global Services Executive Vice President Linda Gooden.

Sign up for Text Alerts

Sign up for e-mail newsletters