Textron said today its Textron Systems business will discontinue production of its sensor-fuzed weapon product because of reduced orders.
As a result, the company said in a filing with the Secuities and Exchange Commission, there will be "headcount reductions, facility consolidations and asset impairments within its Weapons and Sensors operating unit" as well as additional job cuts and asset impairments in the Textron Systems business.
"Historically, sensor-fuzed weapon sales have relied on foreign military and direct commercial international customers for which both executive branch and congressional approval is required," the company said in its filing. "The current political environment has made it difficult to obtain these approvals."
The move is part of a larger restructuring plan the company said is intended to "improve overall operating efficiency across Textron."
Within the company's industrial segment, its Jacobsen turf-maintenance business will be combined with its Textron Specialized Vehicles businesses, which will generate facility consolidations and headcount reductions.
Under the plan, the company expects to incur pre-tax charges of $110 million to $140 million.
"Severance and related costs are estimated to be in the range of $40 million to $55 million," Textron added. "Contract termination and other facility closure charges are estimated to be in the range of $25 million to $30 million, and asset impairment charges are estimated to be in the range of $45 million to $55 million."