PROVIDENCE — Textron Inc. is cutting more than 700 jobs as part of a restructuring plan.
The industrial manufacturing company’s board of directors approved a restructuring plan that is intended to shed operating expenses while the corporation eliminates 2 percent of its global workforce, according to a regulatory filing submitted Tuesday.
The company plans to lay off approximately 725 employees who are largely concentrated in the company’s Industrial, Bell and Textron Systems subsidiaries. According to the filing, the corporation is looking to cut expenses as it faces weaker demand from its Industrial segment.
The plan “does not affect corporate employees in Rhode Island,“ said Textron spokesman Michael Maynard in an email to the Globe on Wednesday night.
The restructuring is expected to take place in the first half of 2024, the filing to the SEC said. The plan, which will include these layoffs, is designed to save the company approximately $75 million annually.
In late October, the maker of Cessna small planes and Bell helicopters said it had a net income of $1.35 per share, and earnings adjusted for non-recurring costs came to $1.49 per share. Those results beat Wall Street expectations.
Textron reported a $269 million profit in its third quarter, it posted a revenue of $3.34 billion in the period — which missed Wall Street expectations. Analysts surveyed by Zacks Investment Research expected Textron to post a revenue of $3.45 billion.
Textron has had a series of new and lucrative agreements from its Aviation segment. Last week, Textron announced an agreement with BAA Training for the purchase of 48 Cessna Skyhawk aircraft, which is expected to be delivered in 2026. The deal was inked at the Dubai Airshow.
In early November, Textron was also awarded a contract by the US Army Contracting Command for three Beechcraft King Air turboprops. The contract allows the military to spend up to $100 million for Textron Aviation’s aircraft over the next five years, according to a news release.
In Tuesday’s filing, the company said it expects to pay out between $35 million to $45 million in severance and related costs.
The news comes as some students at Brown University have called for the school to divest its endowment from weapons manufacturers that “profit from Israel’s apartheid regime, including Textron, Raytheon, Northrop Grumman,” and others. Despite increased pressure from students and other community members, Brown President Christina H. Paxson has repeatedly declined to commit to divestment.
Some student groups, including Brown Students for Justice in Palestine, have also called for Maria Zuber, a board member of both the Brown Corporation and Textron, to resign from her position or be removed from the university’s board. A university spokesperson has not responded to questions by the Globe about Zuber.
This story has been updated with comments from a Textron spokesman.