Steps Necessary To Combat "Impact Of The Economic Downturn"

Rockwell Collins announced Monday a cost reduction plan, the latest aerospace company to announce such measures due to the impact of the current economic downturn.

"Like many other companies, we're dealing with significant challenges in meeting our business objectives. These challenges include air travel declines resulting from the weaker global economy, delays and cancellations in several government programs, and the prolonged Boeing strike," said Rockwell Collins Chairman, President and CEO Clay Jones. "We've had to make some very difficult decisions in order to align our infrastructure and spending to market realities. These carefully considered actions are critical to the long-term success of our company and balance the best interests of our customers, shareowners and employees."

Cost reduction measures that will be taken include a reduction in discretionary spending; managing current staffing levels through attrition, and deferring or eliminating some open employment requisitions; and delaying 2009 merit increases for management and the majority of employees for three months.

The company will also lay off approximately 300 employees across the company, primarily in Operations, and will the number of contract laborers by approximately 100, primarily in engineering functions. Rockwell says those jobs cuts represents an estimated 1.5 percent of the current workforce.

While Rockwell Collins has reduced its originally projected research and development budget for 2009, funding levels in this area will still grow modestly compared to 2008 to meet customer obligations and to maintain a competitive edge.

FMI: www.rockwellcollins.com