July 10, 2012 / 7:29 PM / 6 years ago

Lockheed Martin cuts workforce by 740 employees

(Reuters) - Lockheed Martin Corp (LMT.N), the Pentagon’s largest supplier, said it was reducing its workforce by 740 employees at its mission systems and sensors business to save costs amid U.S. defense budget cuts.

Lockheed said it notified 308 U.S.-based employees on Tuesday that they will no longer have employment with the company.

About 432 employees participated in a voluntary layoff program in May, the company said.

Lockheed had a total of about 123,000 employees as of December 31, 2011.

The mission systems and sensors business is part of Lockheed’s electronic systems segment that makes missile defense systems, manned and unmanned ground vehicles, and control systems for submarines and aircraft.

It serves the U.S. Navy, Air Force, Army and Marine Corps, and some commercial customers.

Pentagon plans to cut defense funding by $487 billion over the next decade to curb the government’s trillion-dollar deficits. Another $500 billion in spending cuts could also be implemented.

Lockheed CEO Bob Stevens said last month that additional budget cuts would cause massive disruption across the defense industry, resulting in extensive layoffs, facilities closures and an erosion of quality.

Lockheed shares fell slightly to $86.76 on Tuesday on the New York Stock Exchange.

    Reporting by A. Ananthalakshmi in Bangalore; Editing by Viraj Nair

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