SEATTLE, July 22 (Reuters) - Teledyne Controls Inc, whose subsidiary supplies data-acquisition and distribution systems for Boeing Co’s 737, said on Wednesday that more job cuts were coming as the company looks to cut costs amid the COVID-19 and 737 MAX downturns.
Reuters reported on Tuesday that Teledyne’s Controls unit halved its factory workforce in California after sales of aerospace products plunged some 50%, with further staff cuts likely.
Executives from Teledyne’s parent company confirmed these numbers and layoff plans during an earnings conference call with analysts on Wednesday, though overall they expected strong free cash flow and a recovery in sales later this year.
“In light of re-initiated shutdowns and travel restrictions, it is prudent to assume such recovery will begin in the fourth quarter,” Teledyne Controls Inc Executive Chairman Robert Mehrabian told analysts.
“We are still reducing our workforce,” Mehrabian added later.
Reporting by Eric M. Johnson in Seattle; Editing by Steve Orlofsky