After failing to renew a contract with the U.S. Army, Raytheon says it will lay off 52 of its employees working at its Orlando facility by the end of the year.
“This is the result of the natural conclusion of our Warfighter FOCUS contract, which had trained virtually every U.S. Army soldier over the past 10 years,” a Raytheon spokesman said. “However, we continue to support our government customers’ training needs from our Orlando facility and other global locations as part of various other training contracts.”
The announcement comes after competing contractor Lockheed Martin was awarded the contract to supply training aids, devices and simulation tools for instrumentation systems and live-fire ranges used by the Army. When that contract was announced in March, it was estimated to be worth up to $3.5 billion over 7 years.
The Lockheed contract covered part of the work Raytheon had been conducting for the Army.
Raytheon’s announcement comes despite the company recently reporting strong results for the third-quarter of the year, including $6.8 billion in net sales — an 8.3 percent gain in net sales year over year. The company also bought back 600,000 shares of common stock during the quarter, worth $125 million at the time of purchase.
As of Friday, Raytheon has 15 job openings in the Orlando area.