Lockheed Martin lays off 3,000 as government shutdown continues

Lockheed Martin lays off 3000 as government shutdown continues

Lockheed Martin has said that they will be placing 3,000 employees on furlough Monday. They said even more employees may be furloughed in the coming weeks. The cuts are being blamed on the government shutdown.

On Friday, the defense contractor said that the furloughs will impact its operations all across the U.S. It has indicated it is working closely with customers in order to fully assess the impact. The number of employees who have been furloughed can continue to increase each week the shutdown continues. However, the company has not indicated how large the number of employees who are on furlough could become.

“I’m disappointed that we must take these actions and we continue to encourage our lawmakers to come together to pass a funding bill that will end this shutdown,” Marillyn Hewson, Lockheed’s CEO and president, said in a statement. “We hope that Congress and the Administration are able to resolve this situation as soon as possible.”

Lockheed executives have indicated that the furloughs will include employees who are not able to work because the government facility where they work is closed. It also involves those whose work requires a government inspection that cannot be completed, or for which the company has since received a stop work order.

Lockheed Martin is not the first company to furlough employees because of the government shutdown. United Technologies Corp. said that it will furlough 2,000 employees now and up to 5,000 more if the shutdown continues into next month. United Technologies Corp. makes Blackhawk helicopters. It said it will stop some manufacturing because government inspectors are on furloughs and military products have to get federal approval.

In addition to the private employees being placed on furlough, the federal government has laid off 800,000 employees that they have deemed as non-essential. When the private companies add up the furloughs, the numbers could near 900,000 in total, according to the experts.

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Drew is a regular contributor covering trending topics.