With a tough economy and the federal government cutting back on defense spending, Lockheed Martin Space Systems Co. on Tuesday said it plans to lay off about 8 percent of its workforce by year-end.
The company expects to lay off about 1,200 workers, mostly from middle-management positions and firstly through voluntary separation.
The greatest impact is expected at three of the company’s locations, including Lockheed’s Waterton Canyon facility in Jefferson County.
The others are in Sunnyvale, Calif., and the Delaware Valley region in Pennsylvania.
The company’s Space Systems division employs about 4,000 people in Colorado, mostly at Waterton Canyon.
A company spokesman said it was too early to tell how many Colorado employees would be affected by the layoffs, and the economic impact to the state remains unclear.
John Brackney, chief executive of the South Metro Denver Chamber, said Lockheed Martin plays a key role both in the national aerospace industry and in the local economy.
“We want as many jobs in aerospace in Colorado as we can have,” Brackney said. “Any time we are going in the opposite direction, there is a concern.”
Space Systems employs about 16,000 in 12 states.
It’s the latest but most significant round of layoffs at Lockheed. In 2009 the company let go of about 800 employees, in part because NASA’s space- shuttle program was ending the following year.
“In today’s economic environment, we have two choices: Make painful decisions now or pay a greater price down the road,” executive vice president Joanne Maguire said in a statement. “This is a difficult but necessary action to improve efficiencies and make our business more competitive going forward.”
Middle-management jobs are expected to be cut by 25 percent with a “significantly smaller percentage” of cuts in other levels and disciplines nationally.
The company first will offer eligible salaried employees voluntary layoffs to minimize the number of involuntary layoffs. That process is expected to last a few weeks, spokesman Steve Tatum said.
Denver Post wire services contributed to this report.
David Migoya: 303-954-1506 or dmigoya@denverpost.com
