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1,477 ACCEPT RAYTHEON EARLY RETIREMENT OFFER; 700 FURTHER JOB CUTS PLANNED

 1,477 ACCEPT RAYTHEON EARLY RETIREMENT OFFER;
 700 FURTHER JOB CUTS PLANNED
 LEXINGTON, Mass., May 27 /PRNewswire/ -- Raytheon Company's recent early retirement offer to longer-service salaried employees resulted in 1,477 acceptances, said Dennis J. Picard, chairman and chief executive officer, at the company's annual meeting in Lexington today.
 In the coming weeks Raytheon expects to lay off approximately 700 additional workers, Picard said, as part of the company's ongoing effort to stay competitive in light of declining defense spending.
 "While the reductions at other companies may be far greater," said Picard, "the reductions here are still painful for all of us. But we need to do this to stay competitive and to save the most jobs in the long run."
 Raytheon extended the early retirement offer to 4,200 employees at 20 locations nationwide between April 21 and May 19. The group consisted of employees eligible to retire and receive a company pension, that is, employees 55 or older who have worked at least 10 years at Raytheon.
 Employees who accepted the offer will receive a lump-sum payment for salary continuance, based on number of years with the company, which in virtually all cases will increase their monthly pensions. Employees who have worked at Raytheon for 15 years or more will have the amount they pay for medical coverage frozen until age 65.
 Prior to the early retirement program, Raytheon's employment declined by 4,900 people, from 75,300 to 70,400, over the past year through attrition and layoffs.
 The reduction in jobs at Raytheon, Picard said, is primarily driven by two factors: a reduction in workload based on a decrease in the defense budget and a need to cut administrative overhead costs in order to remain competitive for future government contracts.
 Raytheon does not expect to incur any charges against earnings as a result of the response to the early retirement program.
 Raytheon Company (NYSE: RTN), headquartered in Lexington, Mass., is a $9.3 billion diversified technology company with sales in four business segments: Electronics, Aircraft Products, Energy and Environmental, and Major Appliances. The company employs 70,400 people worldwide, of whom 27,500 work in Massachusetts.
 -0- 5/27/92
 /CONTACT: Ed Powers of Raytheon, 617-860-2415/
 (RTN) CO: Raytheon Company ST: Massachusetts IN: ARO SU:


SH -- NE018 -- 4387 05/27/92 15:59 EDT
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Publication:PR Newswire
Date:May 27, 1992
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