Lockheed Martin: 123,000 Job Layoffs on November 2

Hope and change, baby. (Guess who major dad sort of “works” for still?)

Defense Industry Layoffs to Roil Election, Stocks

…Defense companies are preparing for the automatic U.S. budget cuts coming January 2, 2013, an estimated $52 billion per year, or 10% of the budget, over the next decade.

That means the U.S. defense and aerospace industries, which employs about 1 million workers, are already contemplating job cuts, like the 123,000 job layoffs Lockheed Martin (LMT: 83.27, -0.98, -1.16%) is now warning about.

Under a 1988 law, the Worker Adjustment and Retraining Notification (WARN) Act, defense companies must notify workers 60 days in advance of plant closings and mass layoffs. That puts those layoffs on November 2, two days before the presidential election.

And that’s not counting small business layoffs; Boeing (BA: 70.74, -0.31, -0.44%) estimates it supports 1.3 million supplier-related jobs.

The National Association of Manufacturers warns nearly one million jobs could be lost by 2014.

ths update: More here.

…The layoffs, of course, won’t all happen on Jan. 2, as it would likely take months for sequestration to begin affecting contractors’ bottom lines. But the timing of the cuts — along with the requirement of 60-day notice — provides an opportunity for the defense industry to ratchet up the pressure on President Barack Obama and congressional leaders to tackle the issue before November.

Only a fraction of Lockheed’s workers ultimately would be let go as a result of the cuts. But the company plans to send out mass notifications because it is unsure exactly which employees would be affected. The White House Office of Management and Budget has not yet provided guidance for how sequestration would be carried out.

“We’ve wanted a dialog about what sequestration could look like,” Walters said. “But as of right now, no, we have no answers from OMB.”

Imagine that! With something this massive coming down the pike, the defense contractors would like the White House to have a PLAN for implementation in place, so business could PLAN.

What a novel concept.

5 Responses to “Lockheed Martin: 123,000 Job Layoffs on November 2”

  1. JeffS says:

    “Plans? We doan need no steenkin’ plans!!!!”

  2. nightfly says:

    Doin’ fine!

  3. KingShamus says:


    That’s going to hurt President Peace Prize but good.

  4. currently says:

    Here’s a plan for the White House occupants:

    Pack your bags.

  5. Gary from Jersey says:

    Obama’s using FDR’s policies and is causing the largest industrial collapse since 1937. We’re beyond screwed at this point.

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