Citing lower-than-expected sales, Cirrus Design has eliminated more than 100 jobs at its Duluth, Minnesota, and Grand Forks, North Dakota, locations. The company expects to freeze production rates at 14 aircraft per week. The slumping U.S. economy is at the core of the slowdown, with international sales of Cirrus aircraft up by some 20 percent. Overall numbers, however, are down 8 percent. New tax incentives could boost sales in the fourth quarter of this year, and the company has hopes its $100,000 SRS light sport aircraft (with some 200 on order so far) will further grow the market for more advanced Cirrus models. With the jobs reduction, Cirrus currently employs a total of 1,230.
Cirrus Reduces Employment Rolls by 8 Percent
Key Takeaways:
- Cirrus Design eliminated over 100 jobs and froze production rates due to lower-than-expected sales, largely attributed to the slumping U.S. economy.
- Despite a 20% increase in international sales, the company's overall aircraft sales are down by 8%.
- Cirrus hopes new tax incentives and orders for its upcoming SRS light sport aircraft will help boost future sales.
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