WASHINGTON, Nov. 19 (UPI) -- Lockheed Martin says it's consolidating facilities and cutting workforce to drive down costs in its Mission Systems and Sensors business.
The company's plant in Eagan, Minn., will close by 2013. Manufacturing work at its facility in Middle River, Md., will be moved by the end of next year.
"In an era of increased affordability, it is essential we drive down costs and optimize capacity at our facilities nationwide," said Orlando P. Carvalho, president of Lockheed's MS2. "While these changes will result in layoffs in some locations, they will strengthen employment in others and provide efficiencies that make us more competitive.
"We estimate these actions are expected to save approximately $150 million over the next 10 years."
The decisions announced by the company's Mission Systems and Sensors business will affect about 1,000 jobs in Minnesota and 60 in Maryland.
The majority of the ground vehicles business, including the Joint Light Tactical Vehicle program managed by Lockheed's Missiles and Fire Control unit, based in Owego, N.Y., will transfer to MFC's facility in Dallas next year. That move will result in the elimination of 40 jobs in Owego, bringing the total impact of these actions to approximately 1,100.
Layoffs will be partially offset by the transfer of approximately 650 jobs to other facilities.
Layoffs and transfers will start in the first quarter of next year and continue over the next two years, the company said.
