Textron, Inc. of Providence, manufacturer of Bell helicopters, Cessna airplanes and automobile parts, will fire 2,500 workers and suffer a third-quarter loss due to the struggling economy and falling demand for aircraft.
The company is expecting a loss of 25 cents per share in the 3rd quarter, before charges, according to company spokeswoman Susan Tardanico.
Beyond Cash Donations: How New Forms of Giving Are Transforming Not-for-Profit Accounting
Evolving Funding Landscape for Not-for-Profits Not-for-profit organizations are being asked to do more with less,…
Learn More
The job cuts and plant closings will result in charges of about $400 million over the next six quarters, according to Textron. The company has announced cuts of about 7,500 jobs, or 12 percent of its workforce, since October 2000. The company has not disclosed which units will be impacted by the layoffs. Also, John Janitz, a company president who worked out of the Providence headquarters, has seen his job eliminated.
“We acted quickly and decisively,” said Lewis B. Campbell, chairman and chief executive officer of Textron, Inc. of the restructuring. “While an already tough economic outlook has become even tougher, these moves further position Textron for cost competitiveness, profitability and accelerated growth.”
Textron halted testing and delayed shipments of helicopters and planes after the terrorist attacks of September 11 and the subsequent ban on flights.
The company is considering lowering profit forecasts on some government contracts, including the V-22 Osprey military aircraft.
In other Textron news, the company has announced that John R. Murphey, 59, has been named chairman and chief executive officer of the $1.6 billion Bell Helicopter business, effective immediately. He previously served as president and chief operating officer of Bell and will continue to operate out of Bell’s Fort Worth, Texas headquarters.
