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So hang on, let me rephrase this: Lockheed has basically fired most of its most highly experienced engineering talent? Is that right? What did Lockheed hope to

So hang on, let me rephrase this: Lockheed has basically fired most of its most highly experienced engineering talent? Is that right? What did Lockheed hope to accomplish by this move? Do you know what the total realized effect was?

euler_angles 7y ago
Not fired, that would indicate termination for cause. This was an early buyout. Engineers at those levels were offered a severance package that included some number of weeks of pay per years spent with the company (up to a maximum of 6 months of pay) and a base amount on top of that. This was the precursor to layoffs -- LM hoped to avoid layoffs by offering buyouts to these engineers. The wisdom of all of this... I don't see it. Their goal was to reduce total amount spent on salaries. This came at the time that the F-35 flight test program began its long wind-down. Other companies were hiring in large numbers because they had just begun big test programs (NGC had just won the B-21 contract and was testing its Triton UAVs), the net effect was that a HUGE amount of engineering knowledge and talent went out the door within a year. I can only speak for what it did to the F-35 test forces -- basically made them start over in terms of learning how to execute their jobs.
- walshemj 7y ago
  Only 6 months max - that's cheap BT in the UK used back in the day get up to 18 months tax free and 6.5 years on your pension. Hence a lot of experienced Mobile engineers took the buy out and went to work with the competition and got a pay rise to boot in their new jobs
onemoresoop 7y ago
I have one word for it: profit
wil421 7y ago
Companies do this all the time for all levels. It was basically an early retirement buyout. There’s a big Lockheed plant in my area and I’m pretty sure all managers, engineers, plant workers, etc were all offered buyouts. Everyone with 3 or so years until retirement.

euler_angles 7y ago

Not fired, that would indicate termination for cause. This was an early buyout. Engineers at those levels were offered a severance package that included some number of weeks of pay per years spent with the company (up to a maximum of 6 months of pay) and a base amount on top of that. This was the precursor to layoffs -- LM hoped to avoid layoffs by offering buyouts to these engineers. The wisdom of all of this... I don't see it. Their goal was to reduce total amount spent on salaries. This came at the time that the F-35 flight test program began its long wind-down. Other companies were hiring in large numbers because they had just begun big test programs (NGC had just won the B-21 contract and was testing its Triton UAVs), the net effect was that a HUGE amount of engineering knowledge and talent went out the door within a year. I can only speak for what it did to the F-35 test forces -- basically made them start over in terms of learning how to execute their jobs.

walshemj 7y ago
Only 6 months max - that's cheap BT in the UK used back in the day get up to 18 months tax free and 6.5 years on your pension. Hence a lot of experienced Mobile engineers took the buy out and went to work with the competition and got a pay rise to boot in their new jobs

onemoresoop 7y ago

I have one word for it: profit

wil421 7y ago

Companies do this all the time for all levels. It was basically an early retirement buyout. There’s a big Lockheed plant in my area and I’m pretty sure all managers, engineers, plant workers, etc were all offered buyouts. Everyone with 3 or so years until retirement.