L3Harris about one-third of the way through divestitures

L3Harris Technologies, seeking to divest 8% to 10% of the company, is about one-third of the way through that effort, according to a top executive.

Dana Mehnert, who leads the company's communications systems segment, told Inside Defense this week that the effort has not been slowed by the ongoing pandemic.

Earlier this year, Bill Brown, L3Harris' chief executive, said the company's deal to sell Leidos its airport security businesses was the largest, but not the last of its divestitures.

Mehnert noted that transaction closed during the coronavirus crisis. "I thought that might get delayed -- it didn't," he said.

Meanwhile, he said L3Harris has moved quickly to ensure about half of its employees can work remotely and to add safety measures at facilities that require in-person attendance. Mehnert said L3Harris has been able to minimize absenteeism.

He told Inside Defense the company has seen a "mixed bag" in terms of government procurement during the pandemic.

"There have been some delays and, in particular, [from] those agencies that have gone to alternative work shifts," he said. "On the other hand, I think the leadership has really recognized the need to move out quickly."

Mehnert said he expects the crisis to result in permanent changes for the company's operations.

"We'll probably have a larger portion of our workforce working remotely," he said, noting that L3Harris has seen many employees be as effective or more effective than when they were in the office.

Additionally, he said the outbreak has shed light on supply chain resiliency.

"It's revealed some areas where we need to better understand who are the second- and third-tier suppliers" to L3Harris suppliers, Mehnert said. There could be "some areas where we need to do more vertical integration because it's too critical to leave a more extended supply chain."