Manufacturer of HIMARS and F-16 announced staff reduction: Reason named

The American aviation technology manufacturer, Lockheed Martin, is set to reduce its workforce by 1-2% over the year in a bid to cut costs and optimize its budget.

The reductions will impact positions across all of its business and enterprise operations, as stated by a company representative. Additionally, the cost-cutting actions will include hiring freezes and voluntary separations.

According to publicly available information, the manufacturer's aviation technology workforce in Maryland comprises over 122,000 employees worldwide. The cost reductions will aid the company in transforming its operations digitally.

"We're driving cost reduction in our direct cost base through supply chain optimization, factory productivity, and also on 1LMX-driven efficiencies," stated Lockheed Martin CFO Jay Malave.

1LMX is Lockheed's name for its transformation program.

American defense companies are experiencing a noticeable increase in orders amid a rise in global conflicts. However, disruptions in supply chains and workforce challenges related to the pandemic are putting pressure on this sector.

The transfer of F-16 aircraft to Ukraine

Ukraine's allies have previously announced the formation of an aviation coalition to provide the country with modern F-16 fighter jets, with the Netherlands and Denmark leading the coalition.

Recently, it has been revealed that the first group of Ukrainian pilots has completed the basic training program in the United Kingdom and has commenced training on F-16 fighter jets in Denmark.

On December 22, the Prime Minister of the Netherlands, Mark Rutte, announced that the government had decided to prepare the first 18 F-16 fighter jets for transfer to Ukraine.

The Pentagon has also stated that Ukraine is expected to receive the first batch of F-16 fighter jets later this year.