MARIETTA, Ga. — Lockheed-Martin, one of metro Atlanta's largest employers, is laying off 550 workers due to a slowdown in orders for its C-130J aircraft, company officials say.
The C-130J, the company's longest-running production line in aviation history, has been building since 1950 for more than 70 countries.
While demand for the model remains strong, Lockheed-Martin officials said demand is not as strong as the peak of its production last year.
In 2011, the company produced 36 planes as the number dropped to 32 in 2012. Officials expect only 24 planes will be made in 2013.
Lockheed-Martin officials released a statement about their decision to Channel 2 Action News.
"While lowering the rate helps us preserve longevity and stability of the production line, it also has meant a reduction in the Marietta workforce. We estimate a reduction of around 550 people as a result of the reduced C-130J production, some of which has already occurred."
Officials with the local International Association of Machinists and Aerospace Workforce said 250 workers already have been laid off. They are expecting another 230 people by the end of the year.
Although some workers retired, most are involuntary layoffs.
Kennesaw State economist Dr. Don Sabbarese says the loss of these kinds of jobs in a weakly growing economy hurts the local recovery.
"Layoffs in a weak recovery will hurt the economy, but also the demand could pick up as fast as it slowed (down) for planes," he said.
Lockheed-Martin officials said they are trying to use retirements and normal attrition to handle the slowdown, but union officials said the majority of workers are being involuntarily laid off.