Despite More Layoffs, Collins Aerospace Sees Recovery Coming
The Coronavirus pandemic is not being kind to those who have worked at one of Iowa's key employers, as for the second month in a row, Collins Aerospace announces another round of layoffs.
The bleeding started in July when the company announced its first round of layoffs, followed by another hit in September. With that round, 72 Cedar Rapids positions were cut, followed by over 15,000 jobs eliminated by Collins' Aerospace's parent company, Raytheon Technologies. Then, it was 29 more in December out of the Decorah and Bellevue plants.
It was not announced how many workers will be cut this time around, but KWWL says they will get separation packages.
A statement released by Collins Aerospace officials expressed regret for the difficult decisions that must be made as the company experiences even bigger declines than expected due to hits to the aviation industry thanks to COVID-19.
These are difficult but necessary decisions to assure that our company is well-positioned for success when the industry recovers.
But how quickly will the laid-off workers recover? Separation packages and assistance with outplacement services to find new employment will be offered.
According to the Cedar Rapids Gazette, Collins Aerospace is seeking $85 million in cost reductions in 2021. Raytheon's CEO projects a single-digit percentage decrease in projected sales from 2020 and says that despite layoffs, he sees recovery after the first quarter and the reinstatement of merit-based pay increases.