L3Harris Technologies to Cut 2,500 Jobs in $1 Billion Cost-Saving Plan

L3Harris Technologies, a major defense contractor, announced plans to reduce 5% of its 50,000-strong workforce in 2023 as part of a $1 billion cost-saving initiative. The layoffs, which will impact approximately 2,500 employees across the company's global operations, come following L3Harris' $4.7 billion acquisition of Aerojet Rocketdyne in December 2022.

The cost-saving plan aims to streamline operations and improve efficiency within the combined organization after the acquisition. According to a person familiar with the situation, the reductions are not evenly distributed throughout the company and are not necessarily focused on the Aerojet Rocketdyne division.

L3Harris is 'right-sizing' its workforce as part of a broader effort to deliver on its LHX NeXt commitment of $1 billion in cost reductions over the next three years. The company stated that the cuts are aimed at eliminating redundancies across all functions of the organization.

Why this matters: The layoffs at L3Harris Technologies reflect a broader trend of companies across sectors resorting to job cuts to reduce costs and improve their bottom lines. As a major defense contractor, these workforce reductions could have implications for L3Harris' operations and its ability to deliver on key contracts.

The announcement comes amid a wave of layoffs across various industries, as companies grapple with economic uncertainties and seek to streamline their operations. L3Harris Technologies' decision to cut 5% of its workforce highlights the ongoing challenges faced by businesses in the current economic climate, even in the defense sector which has historically been more resilient to downturns.

Key Takeaways

• L3Harris to cut 5% of 50,000-strong workforce, impacting 2,500 employees.
• Cost-saving initiative aims to streamline operations after $4.7B Aerojet Rocketdyne acquisition.
• Cuts are part of L3Harris' $1B cost reduction plan over 3 years.
• Layoffs reflect broader trend of companies cutting jobs to reduce costs.
• Cuts could impact L3Harris' operations and ability to deliver on contracts.