Raytheon to chop workplace house by 25% because it embraces hybrid work

Raytheon Technologies is embracing the hybrid work mannequin as a way to cut back its footprint and foster a extra inclusive workforce, CEO Greg Hayes instructed CNBC Tuesday.

After greater than a yr of working from dwelling, an experiment spurred by the Covid-19 pandemic, the corporate plans to chop 1 / 4 of its workplace house and welcome staff to the workplace solely when needed.

“What this pandemic has proven us in all actually is that, you realize, you could be productive in various work environments,” he mentioned in an interview with Jim Cramer on “Mad Money.”

Raytheon, which reported having 181,000 staff globally as of December, mentioned about 100,000 individuals have labored remotely in the course of the pandemic. Raytheon is taking a look at lowering its 32 million sq. toes of house by 25%, or 8 million sq. toes.

That will not spell the top of in-person work actions at Raytheon, an aerospace and protection large primarily based in Waltham, Massachusetts. Hayes sees bringing employees in as a chance to keep up firm tradition however famous a profit in casting off day by day journey to campus.

“I nonetheless assume it’s important to be within the workplace often,” he mentioned. “You should construct social capital, it’s important to construct that group esprit de corps, however you do not have to have an hour commute each single day to be productive.”

Raytheon additionally has its concentrate on reaching variety targets, and Hayes thinks a work-from-anywhere mannequin shall be key in supplying the steadiness between work and household life that many ladies demand.

During the pandemic, the rate of women’s labor force participation fell to ranges not seen in many years.

“We’re going to provide individuals flexibility and that is going to assist lots when it comes to retention as properly,” Haye mentioned. “As I take into consideration the targets that we now have round variety and attempting to maintain younger ladies within the workforce, this kind of flexibility is completely important.”

Raytheon inventory declined 1.37% on Tuesday to an $85.38 shut. The inventory has climbed 19% this yr.

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