Raytheon to Close Suffolk Unit; Connected to JFCOM Elimination?

Raytheon will close a small modeling and simulation unit in Suffolk, Va., by the end of the year, the company announced last week.

HamptonRoads.com said Raytheon’s decision to shutter the four-person center came “in the wake of the Defense Department’s decision to close the U.S. Joint Forces Command.”

However, a Raytheon spokesman said he couldn’t comment on whether the Pentagon’s plans to shutter JFCOM as part of a series of budget cutting remedies and efficiencies played a part in Raytheon’s decision.

“I can confirm that as part of a routine facility review, we have decided not to renew the lease for that office space,” said Raytheon spokesman Dave Desilets.

The closing of Raytheon’s Suffolk modeling and simulation unit follows a similar move by Boeing last month, The Virginia Daily Press reported.

In September, Boeing announced it was closing its seven-member simulation unit in Suffolk, and the move was “part of a company-wide effort to reduce overhead costs,” according to The Daily Press.

While the size of the Raytheon and Boeing units are relatively small, their closings  may have implications beyond just the individual centers.

The Daily Press reports the JFCOM’s presence in the area had “helped spur an emerging modeling and simulation industry in Hampton Roads.”

And as hinted at by HamptonRoads.com, Raytheon’s and Boeing’s decision could be harbingers of the future, as industry reacts to the Pentagon’s budget-cutting measures.