Raytheon to eliminate more than 15,000 jobs, citing airline downturn

Southwest Airlines CEO says traffic needs to double to avoid layoffs in 2021

Raytheon Technologies Corp. plans to eliminate more than 15,000 jobs this year at its corporate offices, jet engine-maker Pratt & Whitney and aviation and military equipment manufacturer Collins Aerospace amid a broad downturn in the airline industry.

Total reductions at the Waltham, Massachusetts-based company are nearly double the total it initially announced in July.

Chief Executive Officer Greg Hayes announced the cuts Wednesday during a virtual Morgan Stanley analyst conference. Hayes said the cuts amount to administrative cost reductions of about 20% at Pratt & Whitney, based in East Hartford, Connecticut, and about 12% at Collins Aerospace, based in Charlotte, North Carolina.

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.

Aviation is among the industries hardest hit by the global pandemic. The three biggest carriers collectively are expected to lay off about 40,000 workers.

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Raytheon 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.

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