WALTHAM, Mass. -- As the effects of the COVID-19 pandemic continue to ripple throughout the aerospace industry, Raytheon announced the company now plans on cutting 15,000 commercial aerospace and general corporate jobs, 6,500 more jobs from their previous 8,500 estimate. This information comes from the company's chief executive Greg Hayes while speaking at Morgan Stanley's virtual Laguna Conference on September 16. Hayes notes that the cuts come from the troubled state of the industry in the wake of global shutdowns, consumer unease with flight, and a sharp decline in Raytheonb's commercial aviation aftermarket sales.
Raytheon expects the job cuts will reduce subsidiary Pratt & Whitney's selling, general and administrative expenses by 20% and cut those expenses at subsidiary Collins Aerospace by 12%. This reduction is the beginning of larger reductions. The company expects to reduce its amount of office space globally about 20-25% over the next four to five years. Raytheon's commercial aerospace business is attempting to cut about $2 billion in costs this year and save $4 billion through cash-conservation strategies including but not limited to getting rid of inventory.
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