Collins Aerospace Layoffs

Collins Aerospace Layoffs 2023: Is Collins Aerospace Closing?

Collins Aerospace Layoffs 2023 – Collins Aerospace is a North Carolina-based company with 9,000 employees in Iowa. It has announced to lay off less than 1% of its global workforce. 

The company confirmed this news through a spokesperson in September 2023. It emphasizes that these layoffs will affect various parts of the company. It means the layoff won’t be limited to a specific division or location.

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About Collins Aerospace

Collins Aerospace is an American technology company. It is renowned as a global leader in supplying aerospace and defense products. Its headquarters is in Charlotte, North Carolina. Collins Aerospace operates as a subsidiary of RTX Corporation. Initially, it was known as Raytheon Technologies. 

The company specializes in the manufacturing, design, and servicing. It offers these services to a wide range of systems and components. It caters to diverse industries. These industries encompass the following: 

  • Commercial aviation
  • Business aviation
  • Military and Defense
  • Helicopters
  • Space exploration
  • Airports and more

Collins Aerospace employs a structured organizational approach with six strategic business units. These units are:

  • Aerostructures
  • Avionics
  • Interiors
  • Mechanical Systems
  • Missions Systems
  • Power & Control

These units are designed to concentrate on specific aspects of their operations. This division allows Collins Aerospace to offer comprehensive solutions. Designed to meet the requirements of clients within the aerospace and defense sectors. 

This approach solidifies its position as a top-tier player on the global stage as it reaffirms its commitment to innovation and excellence.

Collins Aerospace Layoffs

Collins, a subsidiary of RTX, has a worldwide workforce of around 80,000 employees. This North Carolina-based Collins Aerospace announced layoffs. In this layoff round, less than 1% of their worldwide workforce would be impacted. It is noted that 7,000 employees are based in Cedar Rapids, Iowa. Suppose 1% of the workforce is impacted. This means approximately 800 positions are being eliminated. 

The company’s reason behind these layoffs is to align its cost structure so that the company is able to recover in the aerospace industry.

Erin Callender, the director of global media relations for Collins, mentioned. “The company has not disclosed the timing of the layoffs. Moreover, the number of affected employees in Iowa is also not revealed yet. This move is a part of the company’s broader effort. So that the company remains financially strong in the evolving aerospace landscape.” 

Recently, RTX Corp. has significantly expanded its recall of Pratt & Whitney jet engines. This broader recall will impact almost all the turbines. The turbines that power Airbus SE’s A320 single-aisle aircraft.

Approximately 3,000 Pratt & Whitney engines will need to be removed in the future. So that it can inspect for potentially flawed components. Components that were produced using contaminated metal powder, according to RTX’s announcement.

RTX executives stated during the discussion with analysts. “This increased workload will lead to an average of 350 aircraft being grounded each year until 2026. They anticipate the peak of this impact will be around 650 planes in the first half of 2024.

The Wall Street Journal has reported. This extensive engine inspection and maintenance effort will come at a cost of up to $7 billion. It substantially reduced RTX’s profit by $3.5 billion. Consequently, RTX’s stock declined, also the company revised its full-year sales forecast.

Based in Arlington, Virginia, RTX now anticipates reported fiscal year sales. These sales range from $67.5 billion to $68.5 billion, down from the previous estimate of $75 billion to $78 billion. Additionally, RTX has indicated that the issue will impact pretax operating profit. It is noted that it may impact as much as $3.5 billion over the next several years.

In February 2023, Raytheon Technologies Corp. eliminated up to 195 positions within its Collins Aerospace division. This move was a part of the company’s decision to close two facilities. Both facilities were located in the West Point Business Park.

Back in Oct 2022, Collins Aerospace had around 1,700 workers in the Winston-Salem area. Sadly, these job reductions were equal to about 11.5% of the local workforce of Collins Aerospace.

The affected facilities were situated at 2598 and 2599 Empire Drive. They were near the intersection of South Stratford and West Clemmonsville roads. The WARN Act notice was submitted to the North Carolina Commerce Department. It says this layoff round impacts 163 hourly employees at the 2599 Empire Drive plant. Besides 32 salaried employees at the 2598 Empire Drive location.

At that time, the company revealed its plans for the job reductions that were supposed to be started by March 31. Besides, the process of shutting down the facilities was expected to extend until June 30. It was believed that the date of closing facilities was extended. So that a few employees may be retained beyond that date to facilitate the shutdown. The 163 hourly workers were based in Teamsters Local 391, located in Greensboro.

Back in March 2020, Collins had around 1,500 employees in the local area. The company had already laid off at least 16,500 jobs companywide. In a separate announcement, Collins disclosed the elimination of 90 jobs in Wisconsin. This move was a part of the closure of a plant, as indicated in a WARN Act notice. This particular plant, engaged in interior lighting manufacturing, is situated in New Berlin, Wisconsin.

Raytheon Amendments

Despite challenging global economic conditions, Raytheon made amendments more favorably than other companies. On January 24, Raytheon reported a fourth-quarter net income of $1.42 billion. At the same time, Collins Aerospace reported a 15% increase in fourth-quarter sales. It reached $5.66 billion.

Raytheon also made significant organizational changes. It announced the consolidation of its two legacy defense business units: 

  • Intelligence & Space 
  • Missiles & Defense

These two units are unified under the Raytheon brand. This consolidation was scheduled to occur in the latter half of fiscal 2023. Notably, Collins Aerospace and Pratt & Whitney will operate as separate business units. 

During a conference call on January 24, Raytheon’s chairman, Gregory Hayes, said. “The labor availability remains a significant challenge, particularly in the supply chain,” Hayes revealed that Raytheon had hired over 27,000 employees in 2022. It increased its total workforce to 182,000 by the end of the year.

However, specific workforce numbers per division were not disclosed. Raytheon’s fiscal 2022 annual report indicated that a substantial 70%. It is equivalent to 127,400 employees based in the United States. Hayes also highlighted the need for an additional 10,000 employees. This statement underlined the ongoing labor challenge.

Still, Raytheon remains committed to maintaining its current hiring rate. It hires around 3,000 employees per month. As it recognizes the importance of addressing labor shortages effectively.

What Happened To Collins Aerospace?

On November 26, 2018, United Technologies made a significant announcement regarding the successful completion of its acquisition of Rockwell Collins. Later, United Technologies merged the newly acquired business with UTC Aerospace Systems. It gave birth to the entity now known as Collins Aerospace. 

However, this acquisition became a huge controversy. As it prompted multiple class action lawsuits against the company. 

The newly formed Collins Aerospace reported impressive figures in 2019. It boasted a combined sales total of $26 billion and a workforce of 68,000 employees. This merger was a substantial development within the aerospace industry.

In 2020, United Technologies took another transformative step. As it merged with Raytheon Company, resulting in the creation of Raytheon Technologies. This merger further reshaped the landscape of the aerospace and defense industry.

In July 2023, Collins Aerospace made headlines again. At that time, the company agreed to sell its actuation and flight controls business unit. The French multinational corporation Safran was a part of this deal. This was an all-cash deal valued at a substantial $1.8 billion. It marked a significant business move for Collins Aerospace.

Is Collins Aerospace Closing Its Facility?

Collins Aerospace planned to close its Peshtigo facility by the end of 2023. This closure will lay off around 100 workers. The company notified the Wisconsin Department of Workforce Development through a WARN notice.

According to the notification filed by Collins Aerospace, the process of laying off employees is anticipated to begin on or around July 28. Alongside the facility, located at 701 Maple St., close its operations on or around December 15.

The WARN notice focuses on the fact that affected employees won’t have the option to be displaced. Or they can’t “bump” less senior employees at other company locations.

When questioned about the reason behind the closure of the Peshtigo facility. A company spokesperson, responding to the Green Bay Press-Gazette. He explained that for Collins Aerospace, this is a challenging decision. This move is based on their routine evaluation of business operations.

Collins Aerospace has disclosed that its Peshtigo facility’s operations will primarily be consolidated into existing locations. Including Medley, Florida, and Colorado Springs, Colorado. This transition was expected to begin in July and end by year-end. The company is committed to treating affected employees with respect throughout this process.

As part of the Peshtigo facility closure, a total of 100 positions will be eliminated. However, the spokesperson noted. The 13 positions will either convert to remote work arrangements or be relocated.

Peshtigo’s Mayor, Cathi Malke, expressed her regret over the closure. She emphasized her concern for those 100 employees who were impacted. She highlighted Collins’ longstanding presence in the city. It is valued as a supportive employer and contributor to the community. Malke remains hopeful that another company may purchase the building. So the legacy left by Collins lives on, with the city of Peshtigo offering assistance.

The Bay Area Workforce Development Board is actively working with the company. In order to provide support and assistance to affected employees throughout this transition.

Not only Peshtigo’s Facility, but Collins has also closed numerous facilities so far. Last year, it closed its facility located in New Berlin.

Companies That Announced Recent Layoffs

In recent times, the aerospace industry has faced notable layoffs. GKN Aerospace is closing its Missouri plant. Due to this, it laid off over 700 jobs on August 25.

Another US aircraft manufacturer, Boeing, laid off 2,000 white-collar roles in 2023. It is noted that, primarily, in HR and finance department was affected. However, Boeing is also actively hiring as it intends to hire 10,000 employees for engineering and manufacturing roles.

Beyond aerospace, the tech sector has also joined the bandwagon of layoffs trends. In September 2023, T-Mobile revealed plans to reduce its workforce by 7%. It means it affected 5,000 employees. Qualcomm, amidst U.S.-China tech tensions and economic challenges. It announced layoffs in Shanghai in 2023. 

Shifting the focus to the financial sector, the Federal Reserve is embarking on staffing restructuring. It intended to lay off approximately 300 positions. 

In the automotive industry, General Motors planned to close its plant in Kansas. It has led to 2,000 job losses. Honeywell plans to close its West Chester plant. Due to this, it laid off 66 workers a few days ago. Moreover, Foodpanda decided to lay off Asia-Pacific staff. This layoff move is a part of a partial business sale.

Is It Good To Work At Collins Aerospace?

According to Glassdoor reviews, Collins Aerospace is generally well-regarded by its employees. A significant 75% of them would recommend the company as a workplace to their friends. In terms of work-life balance, it received an overall rating of 3.8 out of 5. The company’s culture and values earned a rating of 3.6, and career opportunities were rated at 3.7.

AmbitionBox, another employee review platform, represents almost the same rating. Based on 554 employee reviews, Collins Aerospace holds an overall rating of 4.0 out of 5. Job security is notably a strong point, earning a top rating of 4.3. However, there is room for improvement in terms of career growth, which received the lowest rating at 3.4.

Who Are The Competitors Of Collins Aerospace?

Collins Aerospace operates in a competitive aerospace industry. It faces off against several rival Aerospace companies. Among its top competitors, you’ll find the top companies like Leonardo. It is noted that Collins competes with a total of 56 active competitors in this dynamic market.

Here’s a list of the top 10 competitors of Collins Aerospace. Let’s see: 

  • Leonardo: It is based in Rome and established in 1948. Leonardo is an acquired company with a significant presence.
  • Embraer: A publicly traded company headquartered in Sao Paulo. Embraer boasts a history dating back to 1969.
  • Sikorsky: Founded in 1925 and headquartered in New York City. Sikorsky is another substantial player, also acquired.
  • Dassault Aviation: A publicly traded company. Dassault Aviation has been operating since 1916 and is located in Saint Cloud.
  • Aviation Industry Corporation of China: This formidable competitor was founded in 1951. It is headquartered in Chaoyang and has an impressive track record.
  • Hal India: Hal India is based in Bengaluru and was founded in 1940. It may be unfunded, but it remains a noteworthy contender.
  • MD Helicopters: Operating out of Mesa and established in 1947. MD Helicopters has successfully raised funding, adding to its prominence.
  • Korea Aerospace Industries: Founded in 1999 and headquartered in Sacheon, si. Korea Aerospace Industries is a publicly traded company making significant strides.
  • Russian Helicopters: Located in Moscow and founded in 2007. Russian Helicopters, though categorized as a seed company, is a player to watch.
  • F-35: Situated in Denver and founded in 2000. F-35, while currently unfunded, is steadily making its mark in the industry.

The Wrap

Collins Aerospace announced layoffs affecting less than 1% of its global workforce. This decision comes in the wake of challenging market conditions and the closure of facilities like the one in Peshtigo. Despite these challenges, employee reviews generally reflect a positive sentiment, with high recommendations and praise for job security. However, there is room for improvement in terms of career growth opportunities. Collins Aerospace competes with formidable rivals. It reflects the dynamic nature of the aerospace sector.