Lockheed Martin reorganizes Electronic Systems unit to cut costs and streamline operations

BETHESDA, Md., 10 Oct. 2012. Executives of Lockheed Martin Corp. in Bethesda, Md., the U.S. defense industry's largest contractor, are splitting their company's Electronic Systems business segment into two business areas in an effort to cut costs in continuing tough times for U.S. military spending.

Lockheed Martin will create the company's Missiles and Fire Control (MFC) and Mission Systems and Training (MST) business areas effective on 31 Dec. 2012 to position the company for growth by increasing customer alignment and reducing costs, officials say.

The reorganization will eliminate the executive management teams of the Electronic Systems business area and the Global Training and Logistics (GTL) business unit, and will affect about 200 jobs, company officials say.

The move brings the company’s business areas to five including Aeronautics, Space Systems, and Information Systems & Global Solutions. The reorganization will streamline operations and save about $50 million a year. The GTL portfolio will split between the two resulting business areas.

The MFC business area will have 16,000 employees and be headquartered in Dallas. Some of its high-profile programs will include the Terminal High Altitude Area Defense System, Joint Light Tactical Vehicle, PAC-3 Missiles, as well as logistics and other technical services from GTL.

The MST business area will have 19,000 employees and be headquartered in Washington. Some of its high-profile programs will include the Aegis Combat System, Littoral Combat Ship, MH-60 helicopter avionics, as well as military and commercial training systems from GTL including F-35 support.

For more information contact the Lockheed Martin Electronic Systems segment online at www.lockheedmartin.com.

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