Raytheon Technologies will reduce pay by 10% from June 1 through the end of the year for all salaried employees across the company's corporate offices and its Pratt & Whitney and Collins Aerospace businesses, while also implementing furlough programs for certain hourly employees.
In a letter to employees issued this week, Raytheon Technologies chief executive Greg Hayes said the coronavirus crisis is taking a major toll on the commercial aerospace industry.
"Our commercial business partners have begun dramatically scaling back on their operations in order to preserve capital and protect the long-term needs of their businesses, and now we must do the same," he wrote.
Hayes said employees affected by the pay cut will be given an additional 15 days off this year. He also noted that he has asked the board to reduce his pay by 20% from June 1 through the end of the year.
"Additionally, based on the decrease in customer demand, our Pratt & Whitney and Collins Aerospace businesses will implement furlough programs across their operations for hourly employees, which will vary by country and site, factoring in customer needs, local regulations and collective bargaining agreements," Hayes wrote. "Hourly employees in those businesses will be part of the furloughs but will not be impacted by the temporary reduction in pay."
He noted that Raytheon Intelligence & Space and Raytheon Missiles & Defense are not included in these actions.
These parts of Raytheon "have a duty to stay fully operational to serve the critical needs of the U.S. Department of Defense and its allies," he added. "The robust strength of these segments of our business will help shield the company overall as we manage through this complex business environment."