Upon the return of civilian employees at the Pentagon, United Technologies canceled the layoffs of 4,000 potential employees Sunday, Bloomberg reported.
"United Technologies greatly appreciates the efforts of those in the administration and congress who facilitated the recall of the furloughed civilian employees," the company said in an e-mailed statement.
The news is the latest development since United Technologies announced 2,000 employees could be let go at its Sikorsky Aircraft facility and another 2,000 at parent companies Pratt and Whitney and UTC Aerospace Systems. The company has had to limit work on its helicopters because there is no money available to pay government inspectors to come examine them.
However, now that staff is back on the job, United Technologies will be able to operate its fleet of Black Hawk helicopters, and engines for its F-35 joint strike fighter jets Bloomberg reported.
Meanwhile, staff in the government departments of information technology, auditing, and public affairs will not be able to return.
"We haven't solved all the problems," Robert Hale, United States under secretary of defense told reporters on a conference call Sunday Bloomberg reported. "We still hope Congress will act very quickly to end this shutdown."
The remaining layoffs are part of the federal contractors' susceptibility in the midst of the meetings between President Barack Obama and congressional leaders to bring the U.S. back into operation. This is crucial for United Technologies because the company relies on 18 percent of its revenue from the government, Bloomberg reported.
Another contractor in Lockheed Martin was planning to put 3,000 employees on furlough because of the shutdown. There have been no plans about whether this stills stands.
"We'll continue to be in close contact with the Pentagon and are hopeful that our programs and contracts can move forward," Gordon Johndroe, a spokesman for Lockheed and Martin told Bloomberg in an e-mail Sunday.
