Business

Collins Aerospace lays off undisclosed number of employees

Company makes cuts with sales down 35 percent, operating profit down 125 percent

Greg Hayes, CEO of Raytheon, Collins Aerospace parent company, said in a conference call earlier this week that Collins
Greg Hayes, CEO of Raytheon, Collins Aerospace parent company, said in a conference call earlier this week that Collins Aerospace is targeting $600 million in cuts and already has cut $300 million, including $90 million since the start of 2020. (Liz Martin/The Gazette)

Collins Aerospace laid off employees from across the country, including many in Iowa, a company spokeswoman confirmed to The Gazette, as the company experiences a decline in sales during coronavirus.

Spokeswoman Pam Tvrdy-Cleary declined to state on how many employees are affected.

“While we were hopeful the previous cost-cutting steps to align our business with lower levels of commercial demand would be enough, they simply were not,” Tvrdy-Cleary said.

“This week, we have made the extremely difficult but necessary decision to implement an involuntary separation program across our U.S. operations.”

Employees laid off will receive a “separation payment, transition payment and continuation of benefits,” Tvrdy-Cleary said.

Collins Aerospace is a business unit of Raytheon Technologies Corp.

Raytheon Chief Executive Officer Greg Hayes said in a conference call earlier this week that Collins Aerospace is targeting $600 million in cuts and already has cut $300 million, including $90 million since the start of 2020.

Tvrdy-Cleary did not immediately comment on how much of those cuts are in the form of job losses.

Overall, Collins Aerospace’s sales were at $4.2 billion in the second quarter, down 36 percent from 2019’s second quarter. The company also went from $1.3 billion in operating profit in the second quarter of 2019 to $317 million in losses in the second quarter of this year.

Neil Mitchell, corporate vice president at Raytheon, said in the earnings call the sales drop was “driven primarily by the adverse impacts of COVID-19 on the aerospace industry.”

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Collins Aerospace is the largest employer in Cedar Rapids and has about 10,000 employees in the state.

Comments: (319) 398-8394; john.steppe@thegazette.com

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