Mooney warns employees of new layoff
Most of Mooney Aviation Company’s remaining 53 employees, down from 500 in 2008, will be laid off by year’s end, the company has told its employees. The company will be down to less than 10 employees. However, the company is not shutting down, and a spokeswoman stressed that Mooney will continue to support present owners and provide a level of spare parts.
“We are not shutting down,” said Mooney Chief Financial Officer Barry Hodkin. “However, we cannot continue to subsidize the company at the level we have in the recent past. We have been in discussions with potential investors for more than 18 months and will continue to work with them. If things change, then the scope of this layoff could change.”
Mooney recently foreclosed on itself, a move that eliminated debt and changed the name to Mooney Aviation Company. However, it also left some investors behind. The move was aimed at making the company more attractive to investors.
Hodkin said negotiations with potential investors continue, but there have been no commitments made to date.
“We will continue to protect Mooney’s assets both tangible and intangible,” Hodkin said. “Those assets include the facilities and our certificates for production and manufacturing.”
Mooney began layoffs in 2008. At that time, the company employed approximately 500 people in the manufacture of its high-performance, single-engine aircraft. That year, as the economy worsened Mooney started taking steps to survive the economic downturn. On Nov. 4, 2008, more than 200 employees were furloughed. Smaller reductions in force continued until they reached today’s employment level of 53.
November 19, 2010