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 Raytheonâs decision to shutter the four-person center came âin the wake of the Defense Department’s decision to close the U.S. Joint Forces Command.â
However, a Raytheon spokesman said he couldn’t comment on whether the Pentagonâs plans to shutter JFCOM as part of a series of budget cutting remedies and efficiencies played a part in Raytheonâs 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 Raytheonâs 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 âpart of a company-wide effort to reduce overhead costs,â according to The Daily Press.
While the size of the Raytheon and Boeing units are relatively small, their closingsÂ may have implications beyond just the individual centers.
The Daily Press reports the JFCOMâs presence in the area had âhelped spur an emerging modeling and simulation industry in Hampton Roads.â
And as hinted at by HamptonRoads.com, Raytheonâs and Boeingâs decision could be harbingers of the future, as industry reacts to the Pentagonâs budget-cutting measures.