The Bethesda, Md, company said the cuts, expected in the next year, are partly intended to ensure that it stays within the ``established budget'' for developing and manufacturing the Air Force's next-generation, top-of-the-line F-22 fighter jet.

In addition, the reductions reflect the defense giant's previously reported efforts to increase deliveries of its C-130J military transports, also built at Marietta, by offering deep price cuts to the Pentagon. Lockheed Martin faces intense competition from Boeing Co's rival C-17 transport, and both companies have proposed discounted, long-term acquisition packages as a way to lock up a large chunk of military-aircraft procurement dollars.

Lockheed Martin declined to spell out the anticipated savings from the latest moves, thoughthey are in addition to the company's overall goal of saving between $2.5 billion and $3 billion annually by 2002.

Just two months ago, some analysts were caught off-guard when Lockheed Martin disclosed that its first-quarter earnings were hurt by continuing production snarls and cost problems on the C-130 program.

The company warned at the time that earnings for all of 1999 could be further negatively affected by certain military-aircraft delivery and pricing issues.

The price pressures are hitting Lockheed Martin at the same time management is reeling from a number of other costly and embarrassing technical and operational snafus in its space and satellite-launch businesses.

Within the past month, the aerospace firm announced a shake-up in the executive ranks of its space unit and summoned an independent team of experts to review a series of unsuccessful launches. Failed launches of the company's Titan IV rockets since the fall of 1998 have drained profits and hurt the company's reputation in one ofits most vital sectors. The results of a top-to-bottom review of the entire company's operations are expected to be announced later this month.

While the company emphasized that the work-force reductions amount to proactive, aggressive moves to prevent cos overruns, both the F-22 and C-130J have been perennial targets of congressional and Pentagon critics who contend they're turning out to be too expensive.