The Denver Post:  Due to the Obama administration’s recent proposal to scrap NASA plans to return to the moon, Lockheed is weighing the possibility of cutting over 600 jobs from its Orion crew-capsule program.  In his 2011 budget, the President has set funds aside for commercial human space flight in lieu of the moon  anding project.  Under the new space flight proposal the Orion space craft would be modified to serve as an escape vehicle for the International Space Station.

In 2006, Lockheed entered a contract with NASA for $3.9 billion to build the capsule. Last month, however, NASA, facing the necessity of rescinding that contract, told Lockheed that it would not be covering contract-termination fees traditionally paid for by the agency.  Since Lockheed will have to, in essence, eat the costs associated with the cancellation provisions, it sees job cuts as one way to recoup those costs.