CEDAR RAPIDS, Iowa (AP) — Military contractor Rockwell Collins could be forced to cut hundreds of jobs if Congress doesn't come to an agreement on the federal budget that prevents automatic defense spending cuts.
The Cedar Rapids company's CEO Clay Jones says if no budget agreement is reached and across-the-board cuts known as sequestration occurs in March, layoffs would have to come next.
He estimates the automatic cuts would directly result in the loss of about 300 jobs in the company's government systems division. Jones says it is possible job losses could exceed 1,000 depending on the depth of defense spending cuts and other factors.
The company, with 19,000 employees, has significant foreign government contracts and a commercial division which equips commercial aircraft and private business jets.
It develops and manufactures communications and avionics equipment.