PROVIDENCE – Textron Inc. is planning layoffs, facility consolidations and other cost-saving measures to combat the impact of the COVID-19 pandemic, the company announced Thursday.
The company said it expects to eliminate up to 1,950 positions within the company, or 6% of its workforce.
The restructuring plan is expected to impact its TRU Simulation + Training business in its Textron Systems segment as well as its Textron Aviation and Industrial segments, Textron said.
The Providence-based company said that due to the pandemic, there has been a decline in demand and increased cancellations for flight simulators, and as a result the company is closing its TRU manufacturing operation in Montreal.
Lower sales volume in its aviation segment will result in indirect and direct workforce reductions. Textron said that during the second quarter, the company expects to incur idle facility costs of $70 million to $80 million, mostly attributable to Textron Aviation.The company noted that its manufacturing operations have resumed across the company following the lifting of restrictions due to the virus.
The company’s industrial segment was impacted by a decline in demand for airport ground-support equipment – which will also result in workforce reduction.
The company projected it will incur pretax charges between $110 million and $130 million related to the restructuring. Severance and related costs are projected to be between $60 million and $70 million. Closures of facilities were projected to result in asset-impairment charges of between $30 million to $35 million. The company also said it will incur contract-termination charges related to the closure of facilities of between $20 million and $25 million.
The restructuring was expected to be completed by the end of 2020.
