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Lockheed to cut about 500 jobs in IT services unit

Published 09/09/2015, 09:51 AM
Updated 09/09/2015, 09:51 AM
© Reuters. A Lockheed Martin Corp's F-35C Joint Strike Fighter is shown on the deck of the USS Nimitz aircraft carrier

(Reuters) - Lockheed Martin Corp (NYSE:LMT), the maker of F-35 fighter jets, said it would cut about 500 jobs in its IT services unit by mid-November.

Lockheed said the job cuts were unrelated to the strategic review the company announced in July for its government IT and technical services businesses.

The unit, which accounts for about 16 percent of the company's sales and employs about 24,000 people, has been struggling due to reduced government spending, increased competition and delays in new contracts.

The company, which is buying Black Hawk maker Sikorsky Aircraft from United Technologies Corp (NYSE:UTX) for $9 billion, said it July it would complete a strategic review of the government IT services unit by the end of the year.

It also forecast sales at the unit to decline in the mid-single digit percentage range in 2015.

Reuters first reported the news earlier on Wednesday.

© Reuters. A Lockheed Martin Corp's F-35C Joint Strike Fighter is shown on the deck of the USS Nimitz aircraft carrier

Lockheed's shares were up 1 percent at $208.67 in early trading on Wednesday.

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