United Launch Alliance, a joint venture of Lockheed Martin Corp (LMT.N) and Boeing Co (BA.N), on Friday said it was cutting its executive ranks by 30 percent in December through what it called voluntary departures by 12 executives.
Tory Bruno, chief executive of the venture, told Reuters in an emailed statement the layoffs were part of ULA’s ongoing efforts to adapt to what he called “an increasingly competitive business environment” and redesign its leadership team.
ULA, formed by the two largest U.S. weapons makers in 2006, has long been the sole company able to launch U.S. military and intelligence satellites into orbit, but the Air Force expects to certify a new rival, privately-held Space Exploration Technologies, to compete for some of those launches next month.
The company is also under pressure from a new law that limits its use of the Russian RD-180 rocket engines that power its Atlas 5 launch vehicles after 2019. Congress passed the law after Russia annexed the Crimea region of Ukraine last year.
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