On Monday evening Diamond Aircraft Industries Canada President and CEO Peter Maurer made the startling announcement that the company was laying off “the majority” of its Canadian workforce. The move, it said, was temporary pending what it called “restructuring.” In a phone call late Tuesday, Maurer said that the production of piston singles would continue, though it would be a build-to-order operation.The company had retained just over 50 of its approximately 200 employees.
Maurer also said that while Diamond was suspending the D-Jet program “pending the securing of additional funding,” it was actively pursuing that funding. He gave no timetable for restarting the jet program or for the re-hiring of the laid-off workers. Operations at Diamond Aircraft Industries' sister Austrian company are not affected, according to the release.
Maurer said, “We want to hire back as many employees as possible, as quickly as possible, but, he continued, “the exact number and timing will be determined as we develop our restructuring plans in the coming weeks.”
Maurer blamed the decision to suspend production on “continuing low piston aircraft sales, especially in the North American market.” Maurer also cited the “significant burden of its cost intensive D-JET development program” for the decision.
Maurer also said that Diamond was not seeking bankruptcy protection but that it would seek an "internal" restructuring.