Rockwell Collins Inc. plans to cut about 6 percent of its work force in the next year as the aerospace manufacturer’s defense revenue falls amid curtailed U.S. military spending.
The maker of products including cockpits and radios expects to let 1,250 employees go in the fiscal year through September, Chief Executive Officer Clay Jones said in an interview. About 250 have already been given notices, he said.
Of the 1,000 left to go, he said about 350 are tied to the impact of sequestration, the $500 billion in additional U.S. defense cuts slated to go into effect in January unless lawmakers agree on an alternative deficit-reduction plan. That would reduce Rockwell Collins’s revenue from military programs by about 10 percent next year, Jones forecast.
“If we can avoid sequestration altogether and sanity is restored in Washington, and it’s not just a kicked can which doesn’t help us much, we could avoid those” 350 job cuts, Jones said.
Rockwell Collins, based in Cedar Rapids, Iowa, cut about 800 jobs over the past 12 months. The company employed 20,500 people at the end of the fiscal year through September 2011.
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