PROVIDENCE – Textron Inc. is cutting 725 jobs as part of a global restructuring plan, the company announced late Tuesday.
The company’s board of directors approved a restructuring plan that will reduce operating expenses while downsizing 2% of its total global workforce across its Industrial, Bell and Textron Systems segments.
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Textron Inc. spokesperson Michael Maynard said the layoffs do not include corporate employees.
Layoff plans at both the Bell and Textron systems include targeted headcount reductions to improve the segments’ cost structures plus a realignment of workforces as these segments transition from legacy production contracts to more development, engineering-focused contracts. The company’s Bell segment is in Fort Worth, Texas.
Layoffs in the Industrial segment will occur at the company’s Georgia-based Textron Specialized Vehicles due to a lower demand for some of the company’s power sports products, according to the SEC filing.
The company said jobs cuts will also commence at its German motor vehicle manufacturer Kautex, due to reduced demand for fuel systems from European automotive manufacturers.
Textron expects to save $75 million annually after this restructuring, which is expected to be completed in the first half of 2024.
On Oct 26, Textron reported a third quarter profit of $269 million, an increase from $225 million one year prior.
Revenue totaled $3.34 billion in the quarter, a rise from $3 billion one year prior but still missing Wall Street forecasts. Four analysts surveyed by Zacks Investment Research expected $3.45 billion.
Textron Aviation reported $1.3 billion in revenue in the quarter, an increase from $1.1 billion the year prior, reflecting higher volume and mix and higher pricing. Textron Aviation delivered 39 jets in the quarter, flat with last year, and 38 commercial turboprops, up from 33 in last year’s third quarter.
Bell segment revenue totaled $754 million, flat with the third quarter of 2022, attributed to lower commercial helicopter volume, largely reflecting supply chain constraints, partially offset by higher military volume.
Textron systems revenue was $309 million, up $17 million from last year’s third quarter, largely reflecting higher volume. Segment profit of $41 million was up $10 million, compared with the third quarter of 2022, primarily due to a favorable impact from performance of $8 million.
Industrial segment revenue was $922 million, up $73 million from last year’s third quarter, largely due to higher volume and mix of $45 million at both product lines and an $18 million favorable impact from pricing, principally in the specialized vehicles product line.
(RECASTS lede to correct with Textron comment that no corporate employees involved in layoffs; MINOR edits.)
