Lockheed Martin Corp. announced sweeping organizational changes today, including a realignment of its business units, new senior management appointments, the elimination of a layer of management, and possible divestitures of several businesses.
The company said its new structure will consist of "four core business areas": Aeronautical Systems, Space Systems, Systems Integration, and Technology Services. This will eliminate a layer of management known as "Sectors," and will enable further staff cuts in the coming months, the company said.
In general, however, the company's space business units will be "left alone" and not affected by staff or budget cuts, Lockheed spokesman James Fetig told space.com. Lockheed works in a broad range of aviation niches and other businesses, including environmental cleanup.
The Space Systems area will include "space launch, commercial satellites, government satellites and strategic missiles lines of business," according to a company press release. The area, which includes business units that had sales of about $7.5 billion in 1998, will be headed by executive Albert E. Smith, who previously served as president of Lockheed Martin Missiles & Space.
The company said it will consider selling eight business units, including its space electronics product line based in Manassas, Virginia, which makes components for satellites and space probes.
Lockheed has experienced a number of setbacks in its space businesses over the past year or so, including several launch failures and the recent awarding of a major spy satellite contract to rival Boeing Co.
The company stated that the changes will make it more "customer-focused." The new structure will take effect October 1.
Lockheed Martin (NYSE: LMT) closed at $32.1875 per share on Monday, up 5.1 percent for the day.
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