Planemaker Cuts Back As Part Of "Operational Excellence Strategy"

ANN REALTIME REPORTING 08.22.08 0900 MDT: Confirming numerous reports that have surfaced from suppliers in recent days, on Friday Eclipse Aviation announced it will cut back production of the Eclipse 500 very-light jet, cutting about 650 jobs at the planemaker's facilities nationwide.

Eclipse says the workforce reduction is the result of an "operational excellence strategy," introduced by Acting CEO Roel Pieper at AirVenture in Oshkosh last month. The cuts amount to a 38 percent reduction in the company's total employment ranks, and includes temporary workers and people employed less than six months.

"The reduction is an effort to achieve financial stability as soon as possible," the company said in a brief statement. 

Eclipse is laying off approximately 650 employees affecting all departments and facilities, including its production facilities in Albuquerque, NM; and service centers in Gainesville, FL; and Albany, NY.

"In my effort to take Eclipse Aviation to the next level of growth and sustainability, I am 100 percent focused on operational excellence and a plan to achieve it," said Pieper. "Financial stability is critical for this company and unfortunately, a reduction in workforce was necessary to achieve it. I am confident this action will set the company on the path to profitability so that we can continue to lead the very light jet category."

A direct result of the job cuts will be a slowdown in the production of Eclipse 500s through 2008, though the company did not give exact numbers on how production levels will be affected. The company adds it intends to increase production back to previous levels, "and higher," in 2009.

Continuing its newfound hardline with the media, Eclipse pointedly added it will not release any further information, or conduct any interviews, at this time.

FMI: www.eclipseaviation.com