Staying Focused During Sequestration

Memorandum

DATE:              March 1, 2013

TO:                   All Lockheed Martin U.S. Employees

FROM:             Marillyn Hewson, Chief Executive Officer and President

SUBJECT:       Staying Focused During Sequestration

Sequestration officially went into effect today, triggering nearly $1 trillion in automatic cuts to the federal budget over nine years. Half of those cuts will come from the defense budget, and half from non-defense budgets.

For months, we have advocated aggressively for a more measured, strategic approach to addressing our nation’s fiscal challenges. Sequestration threatens to disrupt our national security, our industry, our company, and you, our employees.

It’s important to note that Congress can still choose to reverse or restructure these cuts, which we believe is a better solution for the U.S. and our industry. We’ll continue working for a more balanced approach.

At the moment, we do not know exactly how sequestration will affect our programs, our business, or our employees. While we do not expect any significant impacts immediately, the magnitude of the cuts makes it clear that some of our programs will be affected. Our customers are working now to determine how to implement the reductions, and we are actively supporting them in that process. We’ll know more as they finalize their plans and we’ll share that information with you as we learn more.

I know how unsettling this kind of uncertainty is for you and your family.  You have my commitment that we will update you frequently as the events unfold.

In the meantime, it’s important to stay focused. The work we do is vital to our nation and to the world, and our customers are counting on us to meet our commitments—no matter what the obstacles or distractions. I know you’ll deliver on those promises because that’s what you always do. Thanks to your dedication, performance and adherence to our values, I’m confident we’ll continue to excel.

Find out more about the campaign to reverse or restructure sequestration through the Aerospace Industries Association’s Second to None website.