(Adds details about restructuring plan, context)
Business jet manufacturer Textron
said on Tuesday it would cut 725 jobs as part of its restructuring plan to reduce operating expenses, sending its shares up more than 2% after the close of trading.
The company said it would reduce jobs in its Industrial, Bell and Textron Systems segments, and restructure its Special Vehicle and Kautex segments due to lower demand for powersports products and fuel systems.
The restructuring, which is expected to be completed in the first half of 2024, is expected to save nearly $75 million annually, according to Textron.
Big American Companies, from Amazon.com
to Wall Street heavyweights like Goldman Sachs
have cut thousands of jobs to cut costs amid concerns the economy is slowing due to rising borrowing costs.
Textron’s plan would result in a pre-tax special charge of $115 million to $135 million in the fourth quarter.
It also foresees an asset reduction of US$80 million to US$90 million and severance payments of US$35 million to US$45 million.
Business jet parent Cessna said the restructuring and impairment charges would not affect its full-year financial outlook.