With the federal government shutdown dragging on, Lockheed Martin (NYSE:LMT) said it is furloughing 3,000 employees beginning Monday and warned more furloughs could be on the horizon if the shutdown continues.
Furloughed employees include those who could not work because the government facility where the work is performed is closed, their work requires government inspection, or if the company received a specific stop work order.
Additionally, the company said the number of employees affected is expected to increase weekly in the event of a prolonged shutdown.
"I'm disappointed that we must take these actions and we continue to encourage our lawmakers to come together to pass a funding bill that will end this shutdown," said Lockheed Martin President and CEO Marillyn A. Hewson said. "We hope that Congress and the administration are able to resolve this situation as soon as possible."
Lockheed Martin's announcement follows Wednesday's news that United Technologies (NYSE:UTX) would be furloughing 2,000 employees if the shutdown continued through the weekend. The furloughs will hit employees at the company's Sikorsky Aircraft locations in Stratford, Conn., West Palm Beach, Fla., and Troy, Ala. The company said if the shutdown continues through next week the furloughs will double to 4,000, and could exceed 5,000 employees if the shutdown continues into November.
Republicans and Democrats are locked in a stalemate over budget allocations and various issues related to health-care reforms. On Thursday, President Obama canceled his planned trip to Asia as a result of the shutdown.
Kris Eddy has no position in any stocks mentioned. The Motley Fool owns shares of Lockheed Martin. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.