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Raytheon doubles job cuts to 15,000, citing airline downturn

Last Updated Sep 16, 2020 at 2:48 pm PDT

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 Wednesday.

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 Wednesday, up $1.48.

The Associated Press