"Automatic Pentagon budget cuts that would take effect next year must be reversed by November, Lockheed (LMT) Martin Corp. chief Robert Stevens said.
The prospect of cuts is having a “chilling effect” on the defense industry, and Lockheed and other companies may stop hiring and training, Stevens, chairman and chief executive of the world’s largest defense contractor, said today at a conference in Washington.
The possibility of about another $55 billion in cuts starting in January “is a huge disruption to our business,” Stevens said at an event on Capitol Hill organized by the Aerospace Industries Association.
“We are not going to hire,” Stevens said. “We are not going to make speculative investments. We are not going to lean forward. We are not going to invest in incremental training.”
Lockheed Martin and other defense contractors have signed “thousands of contracts that have terms and conditions,” Stevens said.
Those contracts will be abrogated when funding stops, “and there will be thousands of claims'' from small businesses, Stevens said."
LOTS of companies are worried about their futures or future quarters...