Lockheed Martin Facility Planned to be Closed Wins Navy Work

by: Matthew Potter
June 28, 2011

Category: Business Line, Companies, Congress, Contract Additions, Contract Awards, Department of Defense, Events, Federal Budget Process, General Dynamics, Lockheed Martin, production program, Restructuring, Services, States, U.S. Navy | RSS 2.0

As companies prepare for what is forecast to be cuts and reductions in the U.S. defense spending they have begun to look at eliminating overhead. They are also under pressure from the Defense Department to lower their costs and be more efficient. This has led to plans for layoffs and the elimination and consolidation of facilities.

Both Lockheed Martin (LMT) and General Dynamics (GD) recently announced major restructuring of their work force which includes the loss of several hundred jobs each. They have also begun the process of closing offices as work their ends or moving it to other locations. One place that will see its local Lockheed facility closed is Eagan, MN.

Even though the company was just awarded a contract by the Navy to manufacture and install upgraded combat systems for existing submarine with the potential to be worth over $750 million with some of the work being done in Eagan the plan is still to realign that office. The contract despite its value is scheduled to be complete by the middle of next year.

While the Eagan office is being closed many of the jobs that are there will be kept but at different Lockheed facilities. The plant had at one time almost 3,000 employees but is now below 1,000. At least 250 of those positions will be eliminated with the balance being moved elsewhere.

The U.S. defense spending has often gone through boom-and-bust periods which has led to many other cities facing situations like Eagan where a large employer can slowly disappear as requirements change or systems reach the end of their production life. It can be quite harrowing for a community to see a major jobs provider go and unless the company is able to attract further work. Eagan, MN unfortunately is facing that situation as the U.S. looks at reducing total defense spending.

Photo from Official U.S. Navy Imagery Flickr photostream.

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