Defense Contractors Raising Voices Against Sequestration
June 2, 2012
Defense contractors are speaking up increasingly loudly against the possibility of mandatory federal budget reductions starting in January, warning that the cuts would take a toll on their businesses.Robert J. Stevens, chairman and chief executive at Bethesda-based Lockheed Martin, the world's largest defense contractor, said last week that the company might be forced to notify all its employees of the possibility of job losses as early as September or October in advance of the reductions.
The cuts, part of a process known as sequestration, were put in place last year during debate over the debt ceiling. The process mandates a roughly $1 trillion reduction in federal spending from fiscal 2013 to 2021. Sequestration requires the cuts to be split between defense spending and all non-defense accounts.