Despite earnings increase, Rockwell Collins to lay off 300 - KWWL - Eastern Iowa Breaking News, Weather, Closings

Despite earnings increase, Rockwell Collins to lay off 300

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CEDAR RAPIDS (KWWL) -- Rockwell Collins is cutting back, leaving more than 100 eastern Iowans without a job.

Rockwell Collins spokeswoman Pam Tvrdy says the company was busy with staff and management meetings on Monday to inform employees of 175 Iowa layoffs which will take effect in January. Tvrdy is calling this a proactive measure to ensure the company's future growth.

Despite a recent report of an earnings increase for Rockwell Collins, the company says several factors are still overwhelming the business.

"We're anticipating a decline in air travel and we make equipment for airlines. Also, there are several government programs that have been delayed which have had an effect on our business as well," Tvrdy said.

The company's cost reduction plan includes:

  • Reducing discretionary spending and managing staffing levels through attrition and eliminating open staff requisitions.
  • 300 workers company wide will be receiving layoff notices including 175 in Iowa.
  • Reducing the number of contract laborers by 100.
  • Delaying 2009 merits for management and most other staff for three months.

When asked if the layoffs would be permanent, Tvrdy said it's still not certain.

"Our hope is that we'll continue to grow, and bring people back when things pick up again," she said.

Tvrdy says the company is still in the process of deciding exactly who will be getting pink slips, but says most are in operations. Rockwell Collins workers told KWWL they were not surprised by the announcement.

For 70 years, Rockwell Collins has produced communication and aviation electronics. They have more than 60 locations worldwide, with five in eastern Iowa, including their Cedar Rapids headquarters. There are 20,000 employees worldwide with 8,600 in Cedar Rapids.

In September Rockwell Collins asked for 80 voluntary layoffs in response to a strike at Boeing, one of Rockwell's biggest clients.

Online Reporter: Brady Smith

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