Collins Aerospace will lay off 72 Iowa employees on Sept. 4, according to a WARN notice filed with Iowa Workforce Development.
The company had announced the layoffs July 30 but did not indicate at that time how many employees would be affected.
The cuts come amid declining sales numbers during coronavirus. The company’s operating profit was down 125 percent in the second quarter.
The company already has implemented “voluntary separation agreements,” furloughs, pay cuts, a hiring freeze and a cancellation of any merit pay increases, according to an email obtained by The Gazette that had been sent to all employees from Collins Aerospace President Stephen Timm.
Timm said the cuts primarily affect Collins Aerospace’s commercial business functions.
“As difficult as this decision is, resizing our workforce is necessary for Collins to better align with future business demand in this evolving environment and to position the company for long-term success,” Timm said in the email.
“Meanwhile, we will continue to maximize opportunities on the military and defense side of Collins, which remains strong.”
Collins Aerospace will give laid off employees one week of severance pay for each year served at the company, according to a document obtained by The Gazette from a laid-off worker in Alabama, after the company terminated an undisclosed number of employees two weeks ago.
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Employees also will receive between $3,000 and $6,000 in a transition payment, according to the document.
A spokeswoman from Collins Aerospace declined to comment on the document obtained by The Gazette but said in a statement Thursday that the affected employees will receive a “separation payment, transition payment and continuation of benefits, in addition to outplacement services to support impacted employees through the transition.”
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