Government IT
Raytheon establishes IT unit in Sterling

Waltham, Mass-based defense contractor Raytheon said last week that its newly formed intelligence, information and services business will establish its headquarters at the company’s existing Sterling office.

The new unit stems from a consolidation the company announced last month. As a result, Raytheon combined its intelligence and information systems business with its technical services unit. The new unit will focus on areas including surveillance, training, and engineering work for government and commercial customers, the company said.

Raytheon spokesman Dave Desilets said the company does not plan to add office space at the Sterling campus. He would not comment on whether the company will increase the number of employees there.

— Marjorie Censer

IBM cuts hours of contract workers

IBM, cutting costs in the wake of its first quarterly earnings shortfall in eight years, ordered some U.S. contract workers to reduce their hours, according to a memo obtained by Bloomberg News.

CDI, a provider of staffing and outsourcing services, told employees working on IBM jobs that they should bill for no more than 36 hours a week in the second quarter, according to the memo. CDI, based in Philadelphia, cited “challenging economic conditions” in explaining the move.

When it reported earnings on April 18, IBM said it would spend $1 billion cutting jobs in its own workforce to reduce expenses.

Vince Webb, a CDI spokesman, declined to comment on the memo. IBM, the world’s biggest computer-services provider, accounts for 20 percent of CDI’s revenue, according to the contractor’s annual report.

James Sciales, a spokesman for Armonk, N.Y.-based IBM, also declined to comment on the memo. The company relies on contractors to manage labor costs on information-technology projects for clients, he said.

— Bloomberg News