Lockheed to Split Electronic Systems Business in Two
October 8, 2012
The largest U.S. weapons maker, Lockheed Martin Corp (LMT.N), said it plans to split its electronic systems business into two separate operations focused on missiles and training, a move it said would save $50 million and eliminate 200 jobs.
The change, effective December 31, will give Lockheed five business areas: aeronautics, space systems, information systems, missiles and fire control, and mission systems and training.
Marillyn Hewson, who currently heads the electronic systems business, is scheduled to take over as president and chief operating officer of Lockheed on January 1.
Chris Kubasik, who is set to succeed Bob Stevens as chief executive officer on January 1, said the restructuring would streamline Lockheed operations and strip out a layer of management at a time when the Pentagon is pushing contractors to lower overhead costs.
"This new structure will allow us to better support our customers around the world and positions our company for sustained long-term growth," Kubasik said in a statement.