Lockheed to Eliminate Up to 2,000 Jobs

Lockheed Martin Corp. said it will cut up to 2,000 more jobs at its Marietta, Ga., plant because of slow sales and high costs associated with its new C-130J model of its Hercules cargo plane line. The cuts, to be made in the next year at the Aeronautical Systems division, account for about 21% of the unit’s workers. About 40% of the cuts will come from retirements, attrition or transfers. The nation’s largest defense contractor employs a total of 165,000 people. The cuts will address production inefficiencies at the plant and reduce costs as Lockheed awaits a C-130J order from the U.S. military in 2004. Lockheed also is trying to keep its F-22 stealth fighter, also built in Marietta, within budget. Lockheed shares fell $1 to close at $40.50 on the NYSE.