Jan. 24—Lockheed Martin is cutting 800 jobs in its rotary and mission systems division that includes Sikorsky based in Stratford, but the company has not provided any immediate information as to the impact on its Connecticut operations.
Lockheed Martin's rotary and mission systems division employs 35,000 people in all. A spokesperson stated the company would cut the jobs through a mix of transfers to other Lockheed Martin subsidiaries, attrition through people leaving of their own accord, and what the spokesperson termed "a limited number" of job cuts.
Lockheed Martin earmarked $100 million to pay for severance and other costs of the restructuring in the fourth quarter of 2022.
A senior official with Teamsters Local 1150 told CTInsider the job action does not impact union membership, but rather "salary" workers.
Teamsters Local 1150 members ratified a new contract last month, with union members to receive an 18 percent increase in pay and cost-of-living adjustments over five years. As part of that deal, all covered members were to receive a $5,000 bonus and a 50 percent company match if deposited in a company savings plan.
The contract agreement would also include Lockheed Martin offering up to 250 employees voluntary separation packages this year, and that many more spread over the following two years. Under one option, packages would include a $20,000, lump-sum payment; one week's pay for every year of Lockheed Martin employment; and a year of free health care. A second option would tack on a second year of health care, but cut the lump-sum figure to $5,000.
Sikorsky is in the midst of a formal challenge to a U.S. Army contract award to rival Bell, for a utility aircraft to replace the Sikorsky-built Black Hawk helicopter in the coming decades.
On Friday, Gov. Ned Lamont visited Sikorsky's Stratford headquarters to commemorate the completion of the 5,000th helicopter in the Black Hawk line and variants like the naval Seahawk. Paul Lemmo, president of Sikorsky, said that day he did not see any "significant impact" to Connecticut's workforce for "the foreseeable future" as a result of the Bell award.
Connecticut has a history of extending incentives to support Sikorsky production in exchange for the manufacturer maintaining base-line employment levels in Connecticut. As of last week, the company reported having about 8,000 employees in Connecticut, not including hundreds of contractors and vendors that rely on Sikorsky spending.
Sikorsky has been hiring in Connecticut as it ramps up to full production of the CH-53K King Stallion helicopter for the U.S. Marine Corps, while continuing Black Hawk assembly and upgrades along with the new U.S. Air Force Jolly Green II helicopter and the VH-92 helicopter fleet for the White House.
The U.S. Navy stated last October it expects the last of the White House helicopters to be delivered this year, with no timetable revealed for the helicopters entering Marine One service transporting the president.
Lockheed Martin rotary and mission systems profits were down 7 percent last year to below $1.7 billion, as revenue dropped 4 percent to $16.1 billion.
Includes prior reporting by Ethan Fry and Luther Turmelle.
[email protected]; 203-842-2545; @casoulman
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