Lockheed Martin has begun laying off a segment of its workforce from across the country, including hundreds at its North Texas plant.
Two hundred employees in Fort Worth are expected to leave the company as part of Lockheed Martin’s effort to reduce costs, reported WFAA. Such a measure — voluntary separations and hiring freezes — impacts operations across the entire company, according to Reuters. Based in Bethesda, Maryland, Lockheed Martin employs about 122,000 people around the world, including nearly 19,000 in Tarrant County.
In Fort Worth, Lockheed Martin builds “some of the most advanced aircraft in the world,” including the F-35 Lightning II fighter jet.
More than a week ago, the company reported net sales of $18.9 billion in the fourth quarter of 2023 — down from $19 billion over the same period a year ago. For 2023, net sales were $67.7 billion — up from $66 billion from the previous year.
“Our solid finish to 2023 and full-year results reflect continued strong demand for our all-domain portfolio of advanced defense tech solutions,” CEO Jim Taiclet said in the call.
“Backlog reached a record $160.6 billion, and sales increased 2% year-over-year to $67.6 billion. In 2023, we invested $1.5 billion in research and development and an additional $1.7 billion of capital expenditures to create, accelerate, and refine the development of innovative 21st Century Security capabilities.”
According to Reuters, defense firms in the U.S. are receiving significantly more orders because of the ongoing conflict in the Middle East, tensions between China and the Philippines, and the war between Russia and Ukraine. At the same time, COVID-era disruptions in supply chains are adversely impacting the industry.