Raytheon (NYSE:RTX) layoffs will have the company cutting 15,000 jobs as the airline industry continues to struggle due to the novel coronavirus.
Here’s what investors need to know about the Raytheon layoffs.
- The layoffs were announced by CEO Greg Hayes during a Morgan Stanley analyst conference on Wednesday.
- Hayes said that the layoffs will focus on three areas of its business.
- That includes corporate office, Pratt & Whitney, and Collins Aerospace.
- The cuts will result in Pratt & Whitney seeing an administrative cost reduction of roughly 20%.
- The maker of jet engines has seen shop visits decline by 60% since the second quarter of the year.
- As for Collins Aerospace, the layoffs will result in administrative cost reductions around 12%.
- The maker of military equipment has seen orders for commercial spare parts decrease by 65%.
- RTX also says that it wants to reduce office space by 20% to 25% over the next four or five years.
- The company notes that it’s aiming for cost reductions in 2020 to reach $2 billion.
- Raytheon targeting 15,000 layoffs is almost double the 8,5000 it was expecting earlier this year.
- Workers on TheLayoff.com report that some layoffs happened in Ohio as well.
- Others say that layoffs have been happening at legacy Raytheon and more may be on the way.
- While much of its business is struggling due to the pandemic, Hayes notes that its defense businesses are still performing well.
RTX stock was down slightly as of Thursday afternoon.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.