BETHESDA, Md., July 7 (UPI) -- Lockheed Martin is offering financial incentives to company directors and vice presidents who voluntarily leave the company by Feb. 1.
The move, announced Tuesday by Lockheed Martin Chairman and Chief Executive Officer Robert Stevens, follows a recent meeting between contracting industry executives and senior Pentagon officials, who stressed the need to cut unneeded overhead and administration costs given U.S. Department of Defense budget constraints.
"Our customers are facing increasing demands with constrained resources and they're relying on us to give them the very best value within these constraints," Stevens said. "This was clearly expressed by our top Department of Defense leadership in the recent announcement of major cost savings and productivity initiatives."
Lockheed Martin didn't say how many management staff it hoped to shed with its Voluntary Executive Separation Program and didn't offer details on the plan.
Lockheed Martin has 136,000 employees worldwide. Its reported sales in 2009 totaled $45.2 billion.
The company said the move, in addition to responding to Pentagon cost-cutting efforts, is the latest element in a series of moves by the company to refine strategic alignment, enhance performance and lower costs. Other recent actions include business reorganization, planned divestiture of two units and a significant reduction in international trade show participation.