Friday, June 12, 2009

Cessna to lay off 1,300 in latest round

The Wichita Eagle

Cessna Aircraft Co. will reduce its work force by another 1,300 people, it announced Friday.


Cessna Aircraft Co. will reduce its work force by another 1,300 people, the company told employees this morning.

Including the cuts announced today, Cessna has cut staffing by 8,200 people since November.

Layoff notices will be distributed to 800 employees, primarily hourly workers on the production lines, on June 19, Cessna spokesman Bob Stangarone said. The 60-day notices will be distributed before the start of a four-week furlough.

The remaining notices to about 500 people will be issued no later than August 14, the company said.

In addition to the four-week furlough, the company is adding another three weeks of furlough. Production employees will not be affected by the additional time, Stangarone said.

The three weeks will be scheduled with the individual employees between now and the end of the year, Stangarone said.

"This is a cyclical industry, and right now we're in the worst part of the cycle," Stangarone said. "While the economy appears to have reached the bottom, it's still going to be quite some time before we're going to see the kind of growth in the economy that will drive airplane sales."

Financing remains difficult, daily utilization is down, and customers are waiting to see whether a recovery will come to fruition, he said.

"There are all these forces at work," Stangarone said.

Last week, Cessna chairman, CEO and president Jack Pelton sent a business update to workers warning that more layoffs were in the works as the company continues to grapple with the downturn in the market.

Cessna, which at the end of 2008 had planned to deliver 535 jets this year, has revised production downward four times since November as the company experiences order cancellations and delays.

For more on this story, come back to and look in Saturday's Eagle.

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