Raytheon to cut more than 15,000 jobs amid airline slowdown
The job cuts at the Waltham, Mass.-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, Conn., and about 12% at Collins Aerospace, based in Charlotte, N.C.
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 RTX, +2.40% is seeking $2 billion in cost reductions and $4 billion in cash conservation this year, he said.
The company’s defense-related business, however, remains strong, Hayes said.
Raytheon shares closed at $62.92 Wednesday, up $1.48.