Collins Aerospace Reveals More About Cedar Rapids Layoffs
When Collins Aerospace announced on July 30 that they were implementing "company-wide layoffs", we didn't know how many employees in Iowa would be affected or when.
According to the Cedar Rapids Gazette, the company has now specified some of that information. 72 employees in the state are being let go as of September 4. The cuts come in the wake of declines in sales due to the Coronavirus pandemic and a 125 percent drop in second-quarter operating profit.
These employees will receive one week of severance pay for each year of service to the company, and "transition payments" ranging from $3,000-$6,000. It's reported that some employees might receive outplacement support services (assistance in helping find a new job).
“As difficult as this decision is, resizing our workforce is necessary for Collins to better align with future business demand in this evolving environment and to position the company for long-term success", said Collins Aerospace President Stephen Timm.
The layoffs will affect mostly the commercial business side of the organization, with an intent to "maximize opportunities on the military and defense side of Collins".