Rockwell Collins announces cost reduction plan to manage impact of economic downturn
CEDAR RAPIDS, Iowa - Rockwell Collins today announced a cost reduction plan to effectively manage the impact of the economic downturn.
“Like many other companies, we’re dealing with significant challenges in meeting our business objectives. These challenges include air travel declines resulting from the weaker global economy, delays and cancellations in several government programs, and the prolonged Boeing strike,” said Rockwell Collins Chairman, President and CEO Clay Jones. “We’ve had to make some very difficult decisions in order to align our infrastructure and spending to market realities. These carefully considered actions are critical to the long-term success of our company and balance the best interests of our customers, shareowners and employees.”
Cost reduction measures that will be taken include:
* Reducing discretionary spending.
* Managing current staffing levels through attrition, and deferring or eliminating some open employment requisitions.
* Laying off approximately 300 employees across the company, primarily in Operations, and reducing the number of contract laborers by approximately 100, primarily in engineering functions. This layoff represents an estimated 1.5 percent of the current workforce.
* Delaying 2009 merit increases for management and the majority of employees for three months.
While Rockwell Collins has reduced its originally projected research and development budget for 2009, funding levels in this area will still grow modestly compared to 2008 to meet customer obligations and to maintain a competitive edge through innovation.
More details on Rockwell Collins’ financial performance and outlook for Fiscal Year 2009 are available in our Nov. 4 earnings press release at www.rockwellcollins.com/news/page11193.html.
Rockwell Collins is a pioneer in the development and deployment of innovative communication and aviation electronic solutions for both commercial and government applications. Our expertise in flight deck avionics, cabin electronics, mission communications, information management, and simulation and training is delivered by 20,000 employees, and a global service and support network that crosses 27 countries. To find out more, please visit www.rockwellcollins.com.
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.