U.S. aerospace manufacturer Raytheon Technologies Corp reported better than expected quarterly profit and sales Tuesday but forecast lower than expected 2021 revenue amid a slow global economic environment triggered by disruptions from the COVID-19 pandemic.
FAIRFIELD-SUISUN, CALIFORNIA
Raytheon: Job cuts deeper at Pratt & Whitney and Collins Aerospace than first announced as COVID-19 slammed aviation [Hartford Courant]
Raytheon Technologies Corp., the parent company of jet engine maker Pratt & Whitney, said Tuesday it made deeper cuts in commercial aviation jobs than the 15,000 it announced in September as the aviation and defense giant responded to the coronavirus pandemic that left airline fleets grounded.
At East Hartford-based Pratt & Whitney and at components manufacturer Collins Aerospace there was a 20% reduction in jobs, trimming the worldwide workforce by 16,500 positions. The new numbers came as the company reported its fourth quarter financial results Tuesday.
Raytheon Technologies Corp. said Tuesday it expects to take a $516 million hit on a pending arms deal with an unnamed Middle Eastern nation, citing uncertainty over whether the deal will be approved under the Biden administration.
Raytheon Technologies Corp. will increase planned layoffs by 1,500, bringing the total job losses to 16,500 across the Massachusetts-based defense and commercial aerospace conglomerate, as its commercial aerospace business continues to suffer amid COVID-19.
The 1,500 layoffs will occur at aerospace components manufacturer Collins Aerospace, and additional 500 contractor positions will be cut from Collins, bringing its total reduction of contractors to 4,500. The company previously announced it planned 15,000 layoffs at East Hartford jet-engine maker Pratt & Whitney.
The layoffs amount to 20% of the two subsidiaries combined workforces, CFO Toby O Brien said. They re primarily driven by a continuing downturn in the commercial aerospace industry due to COVID-19.
Provided by Dow Jones
By Doug Cameron Boeing Co. reported its biggest-ever annual loss and took a huge financial hit on its new 777X jetliner, reflecting the pandemic s worsening toll on the plane maker. The write-down comes just as the 737 MAX re-enters service and Boeing tries to recover from a series of botched jetliner and military programs that more than halved its market value over the past two years. That was even before the coronavirus pandemic brought a decadelong boom in aircraft sales to a halt, prompting the company to shed 31,000 jobs. The company took a $6.5 billion pretax charge on the 777X to reflect lower profits over the life of the wide-body plane that is now expected to enter service in 2023, three years late. Airlines have shied away from big jets like the 777X as international travel demand collapsed.