(Reuters) -Business jet maker Textron (NYSE:TXT) said on Tuesday it would cut 725 jobs as part of its restructuring plan in an attempt to reduce operating expenses, sending its shares up more than 2% after the bell.
The company said it will downsize jobs in its Industrial, Bell and Textron Systems segments, and restructure specialized vehicles and Kautex segments due to lower demand for powersport products and fuel systems.
The restructuring, which is likely to be completed in the first half of 2024, is expected to save nearly $75 million annually, Textron said.
Major U.S. companies from Amazon.com (NASDAQ:AMZN) to Wall Street heavyweights like Goldman Sachs have slashed thousands of jobs as they look cut costs amid worries over a slowing economy 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 expects an asset impairment charge of $80 million to $90 million and severance-related costs of $35 million to $45 million.
The parent of Cessna business jets said charges related to restructuring and impairment would not impact its full-year financial outlook.