Collins Aerospace parent company announces pay cuts, furloughs
The parent company of Collins Aerospace is cutting the pay of all its salaried employees and implementing furloughs.
Starting June 1, Raytheon Technologies said it will reduce its salaried employees' pay by 10 percent until the end of the year. Those same employees will get an extra 15 days off this year.
Collins Aerospace businesses will implement furlough programs across it operations for hourly employees. the company said.
In a letter to employees, Raytheon CEO Greg Hayes said the COVID-19 pandemic has hit the commercial aerospace industry hard.
"Airline travel in the U.S. alone is down 96% and we are seeing similar trends globally," he said in the letter. "Our commercial business partners have begun dramatically scaling back on their operations in order to preserve capital and protect the long-term needs of their businesses, and now we must do the same."
Hayes said Raytheon Intelligence & Space and Raytheon Missiles & Defense would not be impacted by these actions.
"As the vast majority of these businesses align to the industrial defense base, these parts of our company have a duty to stay fully operational to serve the critical needs of the U.S. Department of Defense and its allies," he said. "The robust strength of these segments of our business will help shield the company overall as we manage through this complex business environment."
Hayes said he has volunteered to take a 20% pay cut.
"I recognize that this puts a burden on all of you, and your families, and increases the feelings of uncertainty we are all experiencing in this unprecedented time," Hayes said. "However, these are temporary measures that we must take to responsibly manage the company through the business repercussions of the COVID-19 pandemic."
"The leadership team continues to monitor the environment, and respond with immediate actions and near-term plans as needed to ensure the safety and wellbeing of our employees. We are taking today’s actions to preserve jobs and mitigate long-term business impact."