Lockheed Martin Corp

Lockheed Martin Corp

Name

Defense department largest supplier, Lockheed Martin Corp., had announced to shrug at least 10% of its weapons production next year, due to dismissal of employees and mess with suppliers. The company executives are planning to pressurize the president and lawmakers to announce well defined plans for layoffs before November election. If an employer is shutting down any plant or is looking for mass layoffs then he is required to provide 60 days notice in advance to the employees under Worker Adjustment and Retraining Notification Act (WARN).

NAM (National Association of Manufacturers) has estimated that with the cuts in the board’s budget around 1 million jobs will be destroyed by 2014. It is also estimated that aerospace industry might lose 3.4 percent of its jobs by 2015 because of downsizing at the Pentagon. Ship builders and search and navigation industry could see a employment drop of 3.3 percent by 2014 and 10 percent by 2016 respectively.

Although analyst holds a view that this is a short term effect of seizure and Lockheed Company know how to deal with this adverse situation. But it is sure that next year, every defense program and project could see a cut of 15 percent, resulting in declining g revenues and industry layoffs. Securities and Exchange Commission regulations are welcoming and appreciating companies that are coming forward to disclose their next month projected business losses or significant downturns.

Many lawmakers and fiscal policy experts are worried for the next year when more than $1 trillion of automatic spending cuts will be equally divided between defense and domestic programs and Bush era tax cuts and other tax breaks will also expire by the end of the year, leading to cataclysmic fiscal cliff. They view, deep spending cuts and sudden surge a deadly combination and could spur another recession.

However, company...