Aerospace industry giant announces new layoffs across key sites
Collins Aerospace, a major global player in aerospace and defence manufacturing, has confirmed a new round of layoffs impacting 131 employees across two key locations in Iowa—Cedar Rapids and Decorah. This follows an earlier round of cuts just three months ago, during which 160 workers were let go from the Cedar Rapids site.
The layoffs were first reported by the Corridor Business Journal (CBJ), which cited a company spokesperson explaining that the move is part of an effort to “optimise our organisational structure where needed.” The company added that it is working closely with affected employees to support them through the transition, although no specifics were given regarding severance or retraining programmes.
According to data from the Worker Adjustment and Retraining Notification (WARN) system, the most recent layoffs will impact 102 employees at Cedar Rapids and 29 at Decorah. Employees were formally notified on 12 June, and the layoffs are scheduled to take effect on 18 July 2024.
The timing and scale of the layoffs come as a significant blow to the region, particularly Cedar Rapids, which houses Collins Aerospace’s Missile Systems and Avionics Division. The company is a major employer in Iowa, with nearly 9,000 workers across the state, most of whom are based in Cedar Rapids. With the latest round, an estimated 248 employees have been laid off across Iowa since September 2020, according to CBJ reporting.
This trend mirrors broader pressures in the global aerospace and defence industry. While the sector continues to benefit from increased defence spending and new commercial aviation technologies, many firms are also undergoing structural changes to streamline operations and cut costs. Collins Aerospace’s statement about “organisational optimisation” appears to fall within this industry-wide shift.
The company, a unit of RTX Corporation (formerly Raytheon Technologies), plays a pivotal role in supplying advanced avionics, communications, and mission systems for both military and commercial clients worldwide. With such a large footprint in Iowa, any fluctuation in its workforce carries ripple effects through the local economy, affecting not just families but also local suppliers, schools, and service providers.
Despite the layoffs, there has been no indication from the company of a reduction in overall operations at the affected facilities. However, some industry watchers say these moves could signal a longer-term reshaping of Collins Aerospace’s business strategy or a response to changing contract volumes.
On social media, the layoffs have drawn concern and sympathy. A recent post from the layoff-tracking account @layoffhub highlighted the development, triggering a flurry of reactions from current and former employees as well as regional observers concerned about the economic implications for eastern Iowa. See post here.