Cessna Issues Layoff Notices To Hundreds Of Workers

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Key Takeaways:

  • Cessna is laying off over 500 workers at its Wichita and Bend, Oregon plants, with an additional 150 opting for voluntary separation, due to customers deferring 2009 deliveries and the resulting need to slow production.
  • These job cuts at Cessna reflect a broader downturn in the general aviation industry, with other companies like Hawker Beechcraft, Piper, Mooney, Cirrus, and Ballistic Recovery Systems also announcing layoffs or reduced workweeks, and Eclipse Aviation facing bankruptcy.
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Cessna on Monday notified over 500 workers that they have 60 days left to work, then they will be out of a job. The jobs are being eliminated at Cessna’s plants in Wichita, Kan., and in Bend, Ore., where the Cessna 350 and 400 are built at the former Columbia plant. An additional 150 workers chose voluntary layoff packages. The company said last month the staff cuts would be necessary because some customers have deferred delivery for 2009, so the expected rate of production will have to be slowed. Cessna employs about 12,000 people in Wichita and about 420 in Bend. Hawker Beechcraft also recently announced a cut of 490 people, about 5 percent of its workforce; and Piper said it will reduce its workweek to save the company money but retain jobs. Mooney laid off staff last month, and Cirrus also announced layoffs in September, affecting about 8 percent of its workers.

Ballistic Recovery Systems also recently announced short-term layoffs for about a quarter of its staff. Eclipse Aviation is now working through bankruptcy proceedings.

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