They say this is a measure they're taking to stay competitive while dealing with quote "challenging defense budgets."
560 jobs related to the F-22 fighter jet will move from the company's facility in Marietta, Georgia to Fort Worth, Texas.
Employees have until January 7th to let the company know whether they will relocate.
The company's goal is to have those who want to transfer in their positions by April.
If all the employees decide not to move, a decision will be made regarding layoffs.
In all, Lockheed Martin expects these measures will help them save $250 million over five years.
Just today, the White House told the Pentagon to start planning for the possibility of half a trillion dollars in budget cuts over the next 10 years.
The spending cuts could go into effect if lawmakers don't compromise and let the so-called "fiscal cliff" automatic budget reductions take effect.