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

WALTHAM, MASSACHUSETTS (AP) — Raytheon Technologies Corp plans to eliminate over 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 on 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 per cent at Pratt & Whitney, based in East Hartford, Connecticut, and about 12 per cent at Collins Aerospace, based in Charlotte, North Carolina.

Pratt & Whitney has seen shop visits decline 60 per cent since the second quarter, and Collins Aerospace saw a 65 per cent drop in commercial spare parts orders, Hayes said, noting global commercial air traffic is down about 45 per cent amid the coronavirus pandemic, down from an 80 per cent drop in March.

Raytheon is seeking USD2 billion in cost reductions and USD4 billion in cash conservation this year, he said.

The company’s defence-related business, however, remains strong, Hayes said.

Raytheon shares closed at USD62.92 on Wednesday, up USD1.48.