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The Gazette KCRG
Posted September 29, 2011
Defense spending slowdown hitting home at Rockwell Collins

Rockwell Collins responded to the military spending slowdown this week, eliminating 75 positions in four locations and freezing some positions. All of the cuts are outside of Iowa.

The aerospace electronics company also has reduced discretionary spending and reallocated some personnel from its Government Systems business, which supplies defense markets, to its Commercial Systems division, spokeswoman Pam Tvrdy said.

Rockwell Collins Defense Advanced GPS Receiver (DAGR). (SourceMedia Group News file photo)

Tvrdy said the 75 eliminated positions were spread among four locations — Melbourne, Fla.; Reston, Va.; Duluth, Ga. and Richardson, Texas.

“This reduction in government spending is something we’re going to have to continue to watch and adjust for as needed,” Tvrdy said.

Military spending cutbacks in “surface systems” used by military personnel on the ground have affected Rockwell Collins, Tvrdy said, including postponement of the Net Warrior program and reduced purchases of Defense Advanced GPS receivers, known as DAGRs.

The largest number of positions were eliminated in Richardson, which supplies secure communication systems. The Duluth, Ga., operations supply satellite communications technology and the Reston, Va., facility provides intelligence and communication solutions.

Shifting some personnel to the Commercial Systems business from Government Systems reduced the need to cut even more positions.

“It’s a challenging time on the government side of the business, but fortunately we have a balanced business model, which means that when things are challenging on the government side of our business the commercial side is often going well,” Tvrdy said.

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