Lockheed Martin Is Considering 30% Reduction In Corporate Overhead Costs

Lockheed Martin Overhead Cost Reductions

Lockheed Martin Corp. has launched a review that could cut corporate overhead costs by as much as 30 percent.

According to Reuters, the move would reduce overhead as “part of an announced plan to sell or spin off an array of services businesses with revenue of $6 billion. The move will eliminate one of the $45 billion company’s five current business divisions.”

Earlier in the week Lockheed Martin announced plans to cut 250 jobs from its Missiles and Fire Control division. The company had previously announced that it would slash 500 jobs from itsĀ Information Systems and Government Services division.

“In a large company you have a lot of overhead and it’s affecting more and more bid proposals in terms of cost,” the source said. “You’re competing against people who are really hungry and willing to offer much lower prices.”

There has been a lot of movement in the defense sector in the last week. Northrop Grumman Corp (said it would streamline its business sectors from four to three. The company says the move will better align with the U.S. Defense Department’s changing needs.

Lockheed is also restructuring the Lockheed Martin International division it first set up in July 2013 to help the company win more international orders.

Written by Lane Hanson

Lane Hanson

Lane Hanson is BusinessPundit's Economy Editor. He reports on major changes in the US and Global Economies. He can be reached at College Reviews.