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Cessna, Hawker Beechcraft and Diamond Announce More Layoffs in the Works

Gemini Sparkle

Key Takeaways:

  • The current financial crisis is severely impacting general aviation manufacturers, leading to significant layoffs and production cuts across the industry.
  • Cessna is implementing a second round of layoffs, totaling 2,000 employees, which will reduce its overall workforce by 18%.
  • Hawker Beechcraft is also substantially decreasing production and its workforce, while Diamond Aircraft is furloughing 180 employees due to the economic environment.
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If there was any doubt that the current financial crisis is hitting general aviation hard, the latest round of announcements from manufacturers should reinforce the bad news. The new year will get off to a lousy start for some 2,000 employees at Cessna. In a memo to employees, company management announced a second round of layoffs, following the earlier announcement that 665 jobs were on the chopping block. The two rounds of cuts will pare the Cessna workforce by about 18 percent overall, spread across a total of 15,000 workers at plants in Wichita and Independence, Kansas, and Bend, Oregon. Two months’ notices will be distributed starting in the next few weeks, with separations scheduled for March, according to Cessna Vice President Jim Walters. Cessna will also offer a voluntary layoff program.

Blaming the down economy, Hawker Beechcraft President James Schuster wrote in a memo to employees, “…we are forced to substantially decrease our 2009 production levels and take the painful step of reducing our workforce accordingly.” Details of the layoffs are being finalized and no numbers were announced. Neither did Schuster indicate when the job losses would occur. HBC laid off close to 500 workers about two months ago, representing 5 percent of its workforce at that time.

Mark Phelps

Mark Phelps is a senior editor at AVweb. He is an instrument rated private pilot and former owner of a Grumman American AA1B and a V-tail Bonanza.

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