Textron undergoing restructuring, no changes planned for Prov.

TEXTRON INC. announced it will restructure, but no changes are planned for the company’s headquarters in Providence.
TEXTRON INC. announced it will restructure, but no changes are planned for the company’s headquarters in Providence.

(Updated 11:02 a.m.)
PROVIDENCE – Textron Inc. plans to restructure and align its businesses through employee reductions and facility consolidations, but no changes are planned for the company’s headquarters in Providence, a spokesman said Wednesday.
The board of directors approved the restructuring, intended to “improve overall operating efficiency across Textron,” according to an Aug. 30 federal filing.
Textron spokesman David Sylvestre wrote in an email that the filing relates to segments outside of Rhode Island. Textron Systems and Industrial are the segments that will be primarily affected.
“It is expected to have no impact on our R.I. employment numbers,” he said.
Sylvestre said it is not yet known how many Textron employees companywide will lose positions. Worldwide, Textron employs 35,000, including 268 in Providence – 258 Textron employees and 10 under the Textron Systems umbrella.
The filing states that the restructuring will allow Textron Systems to end production of its sensor-fuzed weapon product due to reduced orders. That will result in “headcount reductions, facility consolidations and asset impairments within its Weapons and Sensors operating unit and also includes additional headcount reductions and asset impairments in the Textron Systems segment,” the filing said.
The Textron Systems Weapons and Sensors unit that produces the sensor-fuzed weapons is based in Willmington, Mass., Sylvestre said.
The filing said that sensor-fuzed weapon sales have relied on foreign military and direct commercial international customers for which both executive branch and congressional approval is required, adding the “current political environment” has made it difficult to obtain approvals.

Sylvestre explained that the sensor-fuzed weapon is classified by the U.S. government as a “cluster munition” and it strictly complies with all U.S. export laws and regulations. He said the weapons have been designed to be much different than older, conventional cluster bombs that are the focus of various human rights organizations.
Sensor-fuzed weapons use precision guidance and self-deactivating technology, making them “entirely unlike conventional cluster bombs which can linger on the battlefield and later cause casualties,” he said.
In April, three people were arrested for protesting outside Textron. They said they wanted to bring attention to the link between climate change and the U.S. military, as Textron is a weapons and defense contractor, as well as the company’s production and sale of what it called “cluster bombs.”

“The small group protests outside Textron headquarters played no role in the decision to end production of the weapon. It was a carefully considered business decision based on a reduction in customer orders, along with the current challenges of getting international sales approved it a timely way from the required US government approval agencies. Ending production of the SFW enables the company to allocate investments and resources in other areas that are more beneficial to the business,” Sylvestre said.

Within Textron’s Industrial segment, the Jacobsen business in Charlotte, N.C., will be combined with the Textron Specialized Vehicles business in Augusta, Ga., resulting in consolidation of certain facilities as well as general and administrative functions and employee reductions.

- Advertisement -

The plan is expected to be substantially completed by March.

The manufacturer said that it expects total pre-tax charges between $110 million to $140 million through the plan, primarily in the 2016 third quarter.

Severance and related costs are estimated between $40 million to $55 million.

Contract termination and other facility closure charges are estimated between $25 million to $30 million, and asset impairment charges are estimated between $45 million to $55 million. Expected cash outlays in connection with this plan are estimated between $65 million to $85 million, to be incurred principally this year.

No posts to display