Lockheed Martin yet another victim of the sequester

CEO Marillyn Hewson frets about the fate of her billion-dollar defense company

By Katie McDonough

Published May 16, 2013 5:25PM (EDT)

  (Wikimedia Commons)
(Wikimedia Commons)

The sequester has already issued a serious blow to vital programs like funding for domestic violence shelters, long-term unemployment, Head Start, Meals on Wheels and health care for cancer patients. And now, the automatic spending cuts are threatening Lockheed Martin's billion dollar defense contracts.

I know, it is almost too much to bear.

As Politico reports, Lockheed CEO Marillyn Hewson is currently facing the uncertainty that many Americans are up against; basic questions like how, in the wake of budget slashing, to put $825 million worth of dinner on the table:

Hewson decried the automatic cuts and described Lockheed’s plan to continue sounding the alarm about their potential effects... And she urged Congress to pass a deficit-reduction package that includes revenue increases and entitlement cuts...

Now, Lockheed finds itself... unsure how the automatic cuts will play out this fiscal year, which ends Sept. 30, much less in 2014. The company has said the cuts could reduce its sales this year by about $825 million, but Hewson said the estimate was based on “modeling” in the absence of hard numbers from the Pentagon.

“What have we seen so far?” she said. “We have had some reductions as a result of sequestration of programs that have gone away, but very minimal.”

Next year, though, could be a different story. “It’ll be a larger impact in 2014 and beyond,” she explained.

Katie McDonough

Katie McDonough is Salon's politics writer, focusing on gender, sexuality and reproductive justice. Follow her on Twitter @kmcdonovgh or email her at kmcdonough@salon.com.

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Related Topics ------------------------------------------

Budget Lockheed Martin Military Spending Sequester Sequester Cuts