Please do not leave this page until complete. This can take a few moments.
Raytheon Technologies Corp. will lay off 15,000 employees in its commercial aerospace and corporate divisions, as the multinational defense and commercial aerospace conglomerate seeks $2 billion in cost savings.
The layoffs will mark a 20% reduction at East Hartford subsidiary Pratt & Whitney -- which makes jet engines -- and a 12% cut at Collins Aerospace, a subsidiary in Windsor Locks, Greg Hayes, CEO of Massachusetts-based Raytheon, said at an analyst conference on Wednesday.
Hayes, who was CEO of United Technologies Corp. before its $120-billion merger with Raytheon, said the commercial aerospace sector is down about 40% globally; better than the industry's COVID nadir in March when it dropped about 80%.
"It's going to be a slow recovery," Hayes said. "It really depends on the timing of the vaccine."
The U.S. Center for Disease Control and Prevention Director Robert Redfield yesterday testified to a U.S. Senate panel that a vaccine won't likely be widely available until late-2021.
The job cuts Hayes announced are about double the 8,500 layoffs the company had planned as of July.
Raytheon posted a $3.8-billion loss during 2020's second quarter, largely due to a pandemic-related drop-off of commercial aviation sales.
In the second quarter of 2020, Raytheon lost $3.8 billion or $2.55 per share, compared to a $1.2-billion or $1.38 per share profit in the year-ago period. Raytheon recorded $14 billion in net sales in the second quarter, compared with $11.3 billion a year earlier.
While commercial aerospace sales slumped, as airlines across the world have reduced flights as airline traffic dropped by 96% in April -- according to the U.S. Bureau of Transportation statistics -- Raytheon's military segments grew in the second quarter.
During the quarter, Raytheon’s intelligence and space's sales grew by 9.4%, and its missiles and defense segment increased sales by 11%.
Right now, about one-third of Raytheon's revenues are coming from commercial aerospace, with the rest coming from the defense side, Hayes said. That's a departure from their pre-COVID expectations of an approximately 50/50 split.
Defense remains a bright spot at Raytheon, and the company is planning to add about 8,200 jobs in that sector, Hayes said. The recent normalization of relations between Israel and the United Arab Emirates and Bahrain open the door for further weapons sales to those countries, Hayes said.
As part of the cost-savings initiative, Raytheon is also looking to reduce its physical footprint, reducing its 3 million square feet of office space by up to 25% over the next five years.
"The fact is we don't need all the office space that we have," Hayes said.
This special edition informs and connects businesses with nonprofit organizations that are aligned with what they care about. Each nonprofit profile provides a crisp snapshot of the organization’s mission, goals, area of service, giving and volunteer opportunities and board leadership.
Learn moreHartford Business Journal provides the top coverage of news, trends, data, politics and personalities of the area’s business community. Get the news and information you need from the award-winning writers at HBJ. Don’t miss out - subscribe today.
SubscribeDelivering Vital Marketplace Content and Context to Senior Decision Makers Throughout Greater Hartford and the State ... All Year Long!
Read HereThis special edition informs and connects businesses with nonprofit organizations that are aligned with what they care about. Each nonprofit profile provides a crisp snapshot of the organization’s mission, goals, area of service, giving and volunteer opportunities and board leadership.
Hartford Business Journal provides the top coverage of news, trends, data, politics and personalities of the area’s business community. Get the news and information you need from the award-winning writers at HBJ. Don’t miss out - subscribe today.
Delivering Vital Marketplace Content and Context to Senior Decision Makers Throughout Greater Hartford and the State ... All Year Long!
In order to use this feature, we need some information from you. You can also login or register for a free account.
By clicking submit you are agreeing to our cookie usage and Privacy Policy
Already have an account? Login
Already have an account? Login
Want to create an account? Register
In order to use this feature, we need some information from you. You can also login or register for a free account.
By clicking submit you are agreeing to our cookie usage and Privacy Policy
Already have an account? Login
Already have an account? Login
Want to create an account? Register
This website uses cookies to ensure you get the best experience on our website. Our privacy policy
To ensure the best experience on our website, articles cannot be read without allowing cookies. Please allow cookies to continue reading. Our privacy policy
0 Comments