Martin Marietta Eliminates More Than 7,500 Jobs : Defense: In face of dwindling federal funding, contractor plans to let another 3,500 workers go.

Martin Marietta Corp., citing cuts in the federal defense budget, said Thursday that it has eliminated more than 7,500 jobs this year and will let another 3,500 workers go over the next 15 months.

The announcement by the defense contractor came as several other companies announced major layoffs, including USAir, which said it will eliminate 2,500 jobs in the wake of a slow summer. Chemical Waste Management Inc., which specializes in hazardous-waste disposal, said it will cut one-quarter of its work force, affecting 1,200 people.

Martin Marietta said its layoffs of about 11,000 workers were across-the-board--though mostly in its defense programs--at facilities in eight states from Daytona Beach, Fla., to Burlington, Mass., and Glen Burnie, Md.

The defense industry giant acquired General Electric Co.’s aerospace division in April. About 2,000 of the layoffs have been aimed at eliminating duplication created by the merger, company officials said.

The company still employs about 94,000 people. Its work force is about 46,000 fewer than both Martin Marietta and GE Aerospace had in 1987.

“Today’s announcement meets our commitment . . . to act quickly and decisively in strengthening the competitive posture of Martin Marietta. These actions recognize the realities of a tough marketplace,” Chairman Norman Augustine said.

At a news conference at the company’s suburban Washington headquarters, Augustine said layoffs and consolidation are necessary because of “the very serious reductions in the defense budget” in the aftermath of the Cold War.

The additional 1,500 layoffs this year were caused by the tightening Pentagon budget, he said. The company depends on defense contracts for about two-thirds of its business.

The company announced defense-related layoffs in Colorado, Florida, Maryland, Massachusetts, New Jersey, New York, Pennsylvania and Tennessee. Because of job transfers, employment is expected to increase at some facilities, officials said.

Augustine said the consolidation will save Martin Marietta $1.5 billion over the next five years.

For example, the company will close its former corporate headquarters of GE Aerospace in Valley Forge, Pa., and consolidate its activities at the main headquarters, eliminating 40% of the headquarters staff positions.

Company spokesman Phillip Giaramita said the company expects to reduce its work force by 9,000 this year; about 7,500 of those workers have already left.

Augustine said that while defense programs have taken a serious hit, he does not expect significant layoffs in the company’s commercial or space-related programs.

Ironically, Martin Marietta’s space program division was linked to three expensive and highly publicized embarrassments earlier this year. A Titan 4 launch vehicle, made by the company, exploded Aug. 2 shortly after liftoff, destroying an expensive military satellite. A $67-million weather satellite made by GE Aerospace lost power and had to be abandoned later that month. And a few days later word came that NASA had lost contact with the $1-billion Mars Observer spacecraft, which was built by a Martin Marietta subsidiary.

Martin Marietta’s shares closed up 37.5 cents at $89, its all-time high on the New York Stock Exchange.