Lockheed to Close Eagan Plant; 1K Jobs Affected

The company said that "layoffs will be partially offset" as it offers to transfer 650 employees from its Eagan facility to other locations around the country.

Lockheed Martin Corporation will shutter its Eagan facility by 2013, and about 1,000 jobs will be affected, the company announced Thursday.

Lockheed said that the “layoffs will be partially offset” as the company transfers 650 jobs from the Eagan facility to its operations in Owego, New York; San Diego; and Manassas, Virginia. Its Eagan facility currently provides mission-critical electronics for air, land, and shipboard military applications.

Company spokeswoman Peggy Mullikin confirmed in a Thursday phone interview that about 650 of the 1,000 local employees will be asked to move. The company will offer relocation packages to them and severance options to those who will lose their jobs altogether.

Mullikin said that the net result of the company's plans will be the loss of about 400 jobs nationwide, although more may be eliminated if employees do not accept transfer offers. Layoffs and transfers will begin to take effect in the first quarter of 2011 and will continue over the next two years.

The company expects its mission systems and sensors business to save about $150 million during the next decade due to the closure of its Minnesota site.

“In an era of increased affordability, it is essential we drive down costs and optimize capacity at our facilities nationwide,” Orlando P. Carvalho, president of the company's mission systems and sensors business, said in a statement. “While these changes will result in layoffs in some locations, they will strengthen employment in others and provide efficiencies that make us more competitive.”

The company also announced Thursday that it will move some of the manufacturing work from its Middle River, Maryland site to Camden, Arkansas-an action that will affect about 60 jobs.

Bethesda, Maryland-based Lockheed employs roughly 133,000 people worldwide, and its 2009 sales totaled about $44 billion.