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Lockheed Martin responded to the NASA termination of funding for X-33/VentureStar with a statement that the business case didn't support continued development without government assistance. Lockheed Martin invested US$357 million in X-33.
Lockheed Martin said it was too early to determine whether there will be layoffs or reassignments within the company as a result of X-33's demise. Of the company's 170,000 employees, 174 in California and Louisiana worked on X-33. Lockheed Martin will focus on transferring its X-33 technologies to other programs.
Lockheed Martin is competing for funds to develop other Space Launch Initiative technologies apart from the X-33 program.