Cedar Rapids Weather
Major Cuts Announced at Rockwell Collins
CEDAR RAPIDS - Rockwell Collins will cut 500 full time jobs and 100 workers who are now employed on a temporary, contract basis. 200 jobs of that total will come in Iowa but the company didn't break down how many from facilities in Cedar Rapids, Coralville, Manchester, Decorah and Bellevue.
The cuts will come primarily in commercial systems operations, reflecting the national problem with commercial aviation. Other areas that will see the biggest share of the Rockwell Collins cuts include the states of Florida and California, where the company will lay off 150 and 100 people respectively. President and CEO Clay Jones made the announcement during an investor conference call to discuss earnings for the first quarter of the fiscal year. (Read message to Rockwell employees) "Over the next few weeks, we'll be reducing our work force by an additional 600 positions in order to size the business to market conditions," Jones said. "To keep the layoffs at a minimum, we also will freeze salaries at 2008 levels for all executives and non-production employees. "These and other actions should allow us to maintain operating margins at about 22.5 percent, despite a year-over-year reduction in revenues." Earlier Tuesday morning, Rockwell Collins reported a sales decline of $54 million in the first quarter of the fiscal year, due in part to a labor strike and production issues at Boeing. The 5 percent drop left sales at $1.058 billion, compared to $1.112 a year ago, but earnings per share went up to 95 cents, compared to 93 cents last year. Economic development leaders point out that Rockwell Collins had added hundreds of jobs in Cedar Rapids in recent years so they see this move as a setback and not an economic disaster. For more than 70 years, Rockwell Collins has been recognized as a leader in communication and aviation electronics. The business is headquartered in Cedar Rapids, but actually operates from more than 60 locations in 27 countries. The company employs approximately 20,000 people worldwide. On the commercial side of the business, the Rockwell Collins-brand aircraft electronics are installed in the cockpits of nearly every airline in the world. And on the government side, the ground-based communication systems transmit nearly 70% of all U-S and allied military airborne communication. More Good Stuff |
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