$1 Billion Deal May Result in Job Cuts

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A $1.06 billion joint venture between Lockheed Martin Corp. and Boeing Co. finalized Friday to supply the U.S. government with launch services for rockets could result in layoffs, the companies said, the Associated Press reports.


In a conference call with reporters Friday, Michael Gass, CEO of the newly formed venture, said the exact number of layoffs or when and where they might occur has not been determined. “There is no specific target,” Gass said.


The Federal Trade Commission reluctantly approved the joint venture last month, saying national security needs expressed by the Pentagon trumped concerns that such a partnership could create a monopoly.


Rather than award the contract to one of the two major domestic suppliers of medium and heavy rockets, a 50-50 partnership, dubbed the United Launch Alliance, was proposed in May 2005. The proposal was aimed at ending a long-standing dispute over who would get the contracts.



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