Raytheon Moving Two Divisions From El Segundo
Raytheon recently announced they will be moving headquarters for the “Space And Airborne Systems” and the newly established “Intelligence, Information and Services” business from the El Segundo, CA site.
This reduces the number of division headquarters at El Segundo from four to two. Over the last two years, Raytheon has been in the process of re-organizing their six business units into four.
The former is moving to McKinney, Texas and the latter to Sterling, Virginia. In the Raytheon announcement, they did not specifically mention how many El Segundo employees would be affected by the move.
The reason for the move was presented as a part of a larger business consolidation which is expected to save over $80 Million.
Greg Carpenter, City Manager for El Segundo, commented:
The move would result in the loss of 170 jobs.
We hate to lose any jobs in El Segundo.
We’re doing what we can to maintain their presence in this city.
Even with this move, Raytheon remains one of the largest employers in Southern California, and has over 10,000 employees in the region and about 68,000 world-wide. Sales from the Raytheon El Segundo division for commercial and defense related programs was over $6 Billion in the last 12 months, with total corporate sales of $24 Billion in 2012.
Raytheon’s announcement follows those of other Southern California Aerospace and Defense companies which have also reduced staff and consolidated businesses. This has been a result of the tighter Government and Pentagon allocations for both Space and Military spending. The Los Angeles Times reported that the US Military expenditures will decrease by nearly half a trillion dollars over the next ten years.
(Image Credit – Raytheon)
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