Lockheed Martinis Corp, one of the world’s largest defense contractors, is an American global aerospace, defense, security, and advanced Technology company with worldwide interests. Lockheed headquarters in Bethesda, Maryland, in the Washington Metropolitan Area and employs 116,000 people worldwide.

On Thursday Lockheed Martinis announced that they plan to cut 4,000 jobs, more than 3 percent of its worldwide workforce, to cope with declines in U.S. spending. By middle 2015 they will close operations in Akron, Ohio; Newtown, Pennsylvania; Goodyear, Arizona, and Horizon City, Texas, The company also said four buildings at its Sunnyvale, California, operation would also be shuttered.

Recently, U.S spending is decreasing while the cost of labor keeps growing up. Business such as Lockheed Martinis Corp try to maintain profit margin by decreasing cost through cutting number of people employed. For the country, this result in higher the unemployment rate. For the business, firing this huge amount of employees may negatively affect the reputation and demotivated employed workers, which may lead inferior product. Additionally, shouting down may operations, in the long run, could make the business lack of ability to meet the increasing demand, which will disappointed consumers and even worse the reputation. Lockheed Martinis Corp should take consideration the long run effect and take the social responsibility to provide jod opportunities.

Resource:

http://en.wikipedia.org/wiki/Lockheed_Martin

http://www.bnn.ca/News/2013/11/14/Lockheed-to-cut-4000-jobs-as-US-spending-wanes.aspx