Thu, Nov 13, 2008
500 Layoffs In Wichita, The Rest In Bend
Cessna Aircraft Company
had some unwelcome news for employees Wednesday, two weeks before
the start of the holiday season. Approximately 665 workers will
soon be handed their walking papers at the planemaker's facilities
in Wichita, KS and Bend, OR.
The Wichita Eagle reports about 500 workers in Wichita will
receive their 60-day notices in the next few weeks, along with
another 165 workers in Bend... about 1/3 of that facility's
workforce.
The layoffs will go into effect in early 2009. Wichita
television station KSN-3 reports Cessna has offered all employees
the option of voluntary furloughs with severance packages, to
helpfully ease the sting of involuntary layoffs.
"We have now finalized the production schedule for 2009 and
supporting annual operating plans," the company said in a e-mail.
"These actions are regrettable, but necessary to ensure our
long-term stability and success."
The planemaker also added two more days to the upcoming holiday
shut down... days that will be unpaid
As ANN reported, Cessna warned last week of
the impending layoffs, which company President and CEO Jack Pelton
blamed on the current economic downturn.
"In response to our current economic environment, we are
adjusting our aircraft delivery plans for 2009," wrote Pelton in a
November 4 memo to workers. "We will have a slight increase in
total deliveries for 2009 as compared to 2008; however, this will
be lower than what was originally planned. The plan will include an
increase in the number of Mustang deliveries and a decrease in some
of the other Citation models. We are also planning on fewer piston
aircraft deliveries in 2009."
KSN adds that jobs at Cessna's plant in Independence, KS appear
to be safe for the moment, thanks to strong sales of the Citation
Mustang light jet... but we doubt anyone at Cessna is resting
easy.
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