Melbourne-based defense giant L3Harris reducing its workforce in cost-cutting effort

Melbourne-based L3Harris Technologies is laying off workers in a cost-cutting move designed "to streamline our operations," the defense and aerospace company said in a statement.

It is part of an initiative L3Harris announced last year that it calls LHX NeXT, which is aimed at saving more than $1 billion over the next three years.

L3Harris — which is one of Brevard County's largest employers ― would not say how many workers are impacted by the staff cuts. But anonymous social media posts on a layoff-focused website indicate that the cuts are extensive and are affecting employees nationwide.

The layoffs follow two major acquisitions by L3Harris last year that were valued at a total of $6.66 billion, plus more recent announcements by the company of moves to get rid of non-core businesses.

L3Harris in January reported that its 2023 profits were $1.20 billion, up 12.9% from the previous year.

'Right-sizing' the workforce

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“L3Harris continues to focus on operational performance and delivering on our LHX NeXt commitments, including $1 billion in gross cost savings over the next three years," the company said in a statement released Thursday night to FLORIDA TODAY by L3Harris Public Relations Director Sara Banda.

"With this in mind, and having identified a series of opportunities to streamline our operations, we have made the difficult decision to 'right-size' our workforce," the statement said. "As our industry’s 'trusted disruptor,' we will continue to think differently about how we deliver value to both our customers and our shareholders.”

LHX NeXt is a multiphase, multiyear initiative by L3Harris to create more efficiencies in the company's operations. The initiative is a follow-up to the major corporate integration activities undertaken after the 2019 merger of the former Harris Corp. and L3 Technologies.

One of Brevard's largest employers

L3Harris did not release details on how many jobs are affected, what divisions they are in, where the jobs are located or the timing of the cuts.

The company is involved in technology for the space, air, land, sea and cyber domains in the interest of national security.

As of earlier this month, L3Harris reported that it had about 50,000 employees worldwide.

It is Brevard County's third-largest employer, behind Health First and Brevard Public Schools, and previously said that it has more than 7,200 employees in Brevard.

L3Harris also has said it is Palm Bay's largest employer, with more that 4,300 employees working there. Palm Bay is headquarters to three of L3Harris' four business segments ― Aerojet Rocketdyne, Integrated Mission Systems, and Space and Airborne Systems. The company's fourth segment ― Communications Systems — is based in Rochester, New York.

Melbourne Mayor Paul Alfrey said the L3Harris layoffs are "very concerning to me," adding that "dedicated, longtime employees need to be protected."

Alfrey said, as far as he knows, the company did not provide Melbourne officials advance notice of the layoffs.

Meanwhile, Palm Bay Mayor Rob Medina issued a statement indicating that he still is expecting L3Harris to proceed with a previously announced plan to expand its Palm Bay operations.

"L3Harris has been a major employer in the city of Palm Bay for decades," Medina said. "We are proud of our relationship with them, and I am excited that they recently chose to expand their footprint in our city, investing millions in new buildings and additional positions." 

Palm Bay officials say they were not notified in advance of the L3Harris staff cuts.

L3Harris has been divesting of non-core assets. This month, for example, the company announced that it has signed a definitive agreement under which an affiliate of Palm Beach County-based Kanders & Co. Inc. will acquire L3Harris' antenna and related businesses for $200 million. The transaction is expected to close in the current second quarter, and is subject to regulatory approvals.

The businesses L3Harris will divest in that deal offer a variety of airborne and ground-based antennas and test equipment. They are part of L3Harris' Space & Airborne Systems business segment, and employ about 375 people.

Additionally, L3Harris in November announced a deal to sell its Commercial Aviation Solutions business for $800 million to an affiliate of TJC L.P.

L3Harris also made two major acquisitions in 2023. L3Harris in July completed its $4.7 billion acquisition of rocket-engine maker Aerojet Rocketdyne, which serves both the space and missile markets. L3Harris in January 2023 completed a $1.96 billion acquisition of Viasat Inc.’s Tactical Data Links product line.

L3Harris posted revenue of $19.42 billion in 2023, up 13.8% from $17.06 billion in revenue in 2022.

The company's profits were $1.20 billion in 2023, up 12.9% from $1.06 billion in 2022.

In announcing the 2023 financial results in January, L3Harris Chair and CEO Christopher Kubasik said: "Entering 2024, we remain focused on driving towards the $1 billion cost-savings target from our LHX NeXt program to enable operational improvements, margin expansion and free cash flow growth."

As part of its 2023 financial results announcement, the company projected that its revenue will increase to somewhere between $20.7 billion and $21.3 billion in 2024.

L3Harris plan to release its financial results for the first quarter of 2024 later this month.

L3Harris is among the largest U.S. defense contractors, currently in the No. 6 position, behind Lockheed Martin, RTX (formerly Raytheon), Northrop Grumman, Boeing and General Dynamics, according to Defense News. 

Dave Berman is business editor at FLORIDA TODAY. Contact Berman at dberman@floridatoday.com, on X at @bydaveberman and on Facebook at www.facebook.com/dave.berman.54