California aerospace industry rocked as 127 Collins workers laid off

San Diego, County – California’s aerospace sector is facing another blow as Collins Aerospace, a key Boeing supplier, prepares to lay off 127 employees at its El Segundo and Chula Vista facilities.  Effective May 12, the cuts are part of a larger workforce reduction affecting 287 workers across California and Iowa, according to state-mandated Worker Adjustment and Retraining Notification (WARN) filings.

The layoffs include 8 employees at Collins’ El Segundo location and a significant 119 at its Chula Vista plant, which supports commercial and military aviation manufacturing. The move is tied to broader cost-cutting measures by Collins’ parent company, RTX Corp., which has faced mounting economic pressures due to international trade disputes and sanctions.

These reductions arrive at heightened volatility in the global aerospace market. President Donald Trump recently imposed steep tariffs—25% on Canadian steel and aluminum and 145% on Chinese imports. China retaliated in kind, suspending critical mineral exports and levying its 145% tariff on U.S. goods, creating ripple effects for companies like RTX that rely on international supply chains and global sales.
Collins Aerospace and RTX subsidiaries Raytheon and Pratt & Whitney have been navigating increasing regulatory and geopolitical challenges. In a February 2025 securities filing, RTX warned that further trade restrictions and retaliatory policies could significantly affect its operations, stating that “increased trade restrictions, retaliatory trade policies, or regime change can affect demand for our products and services.”

The Chinese government has already sanctioned the company due to its military sales to Taiwan. These sanctions, which include substantial fines and business restrictions, now also affect a Collins Aerospace joint venture, compounding difficulties for the firm’s Asia-Pacific operations.

While RTX did not issue a public statement regarding the California layoffs, market analysts continue to monitor the company’s outlook. RTX stock trades at $128.89, with analysts projecting an average one-year target of $135.73—representing a modest 5.31% upside. Despite the turbulence, RTX maintains an “Outperform” consensus from 26 brokerage firms.

Still, the job losses are likely to have a tangible impact on Southern California’s aerospace workforce, already hit hard by supply chain disruptions and shifting defense priorities. Local economic development officials have not yet commented on potential mitigation or support for displaced workers.
As global tensions escalate, companies like Collins Aerospace may face more turbulence ahead—on the ground and in the skies.