Raytheon says it will pursue savings in defense

Raytheon Technologies, which has been cutting costs in its commercial business to cope with the ongoing pandemic, said today it will also make changes in its defense work.

In a call with analysts, Toby O'Brien, Raytheon's chief financial officer, said the company's intelligence and space unit is "undertaking an initiative to consolidate manufacturing that will yield footprint consolidation of 280,000 square feet and savings of $160 million over a 10-year period."

"Initial planning is underway, and the project will be complete by mid-2025," he added.

O'Brien said Raytheon is also seeking to reduce its office footprint by as much as 25% over the next several years. The company expects to cut its real estate by 1.6 million square feet by the end of 2021.

"As always, we are continuously looking for other opportunities to permanently reduce costs," he said.