Lockheed Martin is eliminating 4,000 people and shutting down four plants because of a decrease in United States government spending CNN reported Thursday.
"Reducing our workforce of dedicated employees and closing facilities are among the most difficult decisions we make," Marillyn Hewson, Lockheed Martin chief executive officer said in a statement. "In the face of government budget cuts and an increasingly complex global security landscape, these actions are necessary for the future of our business."
The affected plants are located in Newtown, Pa., Akron, Ohio, Goodyear, Ariz., and Horizon City, Texas, that will see 2,000 positions go. There are also four locations in Sunnyvale, Calif which amounts to an additional 2,000 positions affected.
Lockheed Martin's news is the company's latest development since the fighter jet manufacturer prepared to give employees furloughs during the U.S. government's shutdown in early October.
The company originally estimated it would have to eliminate 3,000 workers, but the Pentagon decided to reduce the number to 2,400. This did not include staff in the government departments of information technology, auditing, and public affairs since these employees were not able to return until the shutdown was over.
Lockheed Martin has eliminated 146,000 positions to 116,000, overall The Los Angeles Times reported. This dates back to when the company began the process in 2008. The numbers equal a 30,000 reduction. This also amounts to 20 percent of its world-wide workforce.
The company has also received over 80 percent of its income from government contracts last year, which totaled $39 billion.
The manufacturer raked in $47.2 billion from sales last year. Company shares have seen a 50 percent increase in 2013, and rose 0.4 percent to $134.87 when the company announced its plans to downsize Thursday USA Today reported.
Lockheed builds its F-35 fighter jets at its facilities in Fort Worth, and Grand Prairie, Texas where 14,000 people are employed CBS dallas-fort worth reported.
