Lockheed Martin Chairman and CEO Bob Stevens outlined the firm’s recent cost-cutting efforts and potential effects of sequestration during testimony before the House Armed Services Committee on Wednesday.
The Defense Department is cutting $480 billion from its budget over the next decade and that amount could swell to nearly $1 trillion if sequestration takes effect in January 2013.
Stevens testified that the lack of clarity surrounding sequestration is preventing the company from properly preparing for its effects and that as many as 10,000 jobs are at risk if the automatic cuts occur.
“But which 10,000? And when? That is difficult to determine without additional guidance from the government that allows us to narrow the potential impacts,” Stevens told the House panel. “We are very hungry for more guidance, very hungry for more information so we can narrow this and behave responsibly.”
The company said the layoff calculation is a rough estimate, citing limited information on the effects of sequestration.
Stevens said that since 2009, Lockheed has removed 1.5 million square feet of space and is scheduled to cut an additional 2.9 million square feet by 2015.