Raytheon doubles job cuts to 15,000, citing airline downturn
The job cuts at the Waltham, Massachusetts-based company are nearly double the total it initially announced in July
WALTHAM, Mass. — Raytheon Technologies Corp. plans to eliminate more than 15,000 jobs this year at its corporate offices, jet engine-maker Pratt & Whitney and aviation and military equipment manufacturer Collins Aerospace amid the downturn in the airline industry, Chief Executive Officer Greg Hayes said Sept. 16.
The job cuts at the Waltham, Massachusetts-based company are nearly double the total it initially announced in July.
Hayes, speaking during a Morgan Stanley analysts conference via webcast, said the cuts amount to administrative cost reductions of about 20% at Pratt & Whitney, based in East Hartford, Connecticut, and about 12% at Collins Aerospace, based in Charlotte, North Carolina.
Pratt & Whitney has seen shop visits decline 60% since the second quarter, and Collins Aerospace saw a 65% drop in commercial spare parts orders, Hayes said, noting global commercial air traffic is down about 45% amid the coronavirus pandemic, down from an 80% drop in March.
Raytheon is seeking $2 billion in cost reductions and $4 billion in cash conservation this year, he said.
The company’s defence-related business, however, remains strong, Hayes said.
Raytheon shares closed at $62.92 Sept. 16, up $1.48.