Cessna slows production to a crawl
You’ve heard several reports of an improving economy and stock market in past weeks, but aviation generally lags behind the economy as a whole, Cessna Aircraft Co. Chairman and President Jack Pelton recently told his employees. Because of that, another round of unspecified layoffs is coming, and as an additional cost-cutting measure the company will shut down from July 6 to 17.
Although customers who buy business jets are seeing greater sales activity, they must increase profitability and find financing before their orders can continue. As they do that, Cessna continues to see a slowdown in sales and delays in deliveries. The company is not releasing details of the slowdown until after parent company Textron releases new financial details April 29.
Sources in Wichita told local news media it could mean another 2,000 layoffs on top of the 4,600 layoffs already made or in progress, but there has been no confirmation of that by Cessna officials. An e-mail sent by Pelton to employees provides what little information there has been thus far.
April 2, 2009