Raytheon Co., the Waltham, Massachusetts-based leading US defence contractor had been brewing off an option to eliminate over 15,000 corporate-level jobs at its headquarters, jet engine manufacturer Pratt & Whitney alongside military weapon manufacturer Collins Aerospace, Raytheon Co.
Chief Executive Greg Hayes said in a statement on Wednesday. In point of fact, the number of projected job cuts in Raytheon Co. by the end of 2020, had been roughly double of the figures which it had initially stated on July this year.
Aside from that, as the leading US defence contractor has been witnessing a havoc-scale downturn at its aviation and jet-engine manufacturing business amid a global-scale halt in travels alongside a pandemic recession at large, the job cuts were aimed at reducing the administrative expenses.
Raytheon to slash 15,000 corporate-level jobs to slash expenses
Besides, speaking at a Morgan Stanley analysts’ conference via webcast, the Raytheon Chief Executive Hayes was quoted saying late on the day that the job slashes would reduce administrative expenses in Pratt & Whitney by 20 per cent, while the slated corporate-level job cuts in Charlotte-based Collins Aerospace would reduce its expenses by 12 per cent.
Meanwhile, citing that the global commercial air traffics had been operating at their 45 per cent capacities due to the pandemic, Haynes had also added that the Pratt & Whitney had seen a decline of 60 per cent in shop visits since the onset of the pandemic, while the Collins Aerospace had experienced a 65 per cent plunge in commercial spare parts orders.
Nonetheless, noting that the company’s defence- and weapon-related businesses remained strong despite a dismal global economic outlook, Hayes said that the leading US defence contractor had been seeking to reduce an at least $2 billion in expenses, while the company was also looking to marmalade around $4 billion in cash by end-2020.
On tops of that, following Raytheon Co.’s Wednesday’s statement, shares’ prices of NYSE-listed Raytheon surged as much as 2.41 per cent to $62.92 per share on Wednesday’s market closure, while in the after-market trading, the American defence contractor had added 0.78 per cent further to wind down the day at $63.41 a share.