Cessna Aircraft to slash additional 1,300 jobs

By AFP

July 15, 2010 Updated Jun 14, 2009 at 9:41 PM CDT

Embattled US corporate jet builder Cessna Aircraft said Friday it plans to cut an additional 1,300 jobs to adjust production to match a meltdown in orders amid the global economic downturn.

The new job cuts will bring the total number of payrolls eliminated since November to 8,200, about half the prior workforce, said the company, a wholly owned subsidiary of Textron Inc.

"We had previously reduced the workforce by 6,900 since November, until April 29. This will be 1,300 on top of that," Doug Oliver, a Cessna spokesman, told AFP.

Oliver said the jobs were based "solely" on a reduction in aircraft production. "We are delivering fewer aircraft than we originally planned," he added.

A year ago the company had projected 535 aircraft deliveries in 2009, a number that has since been revised to between 270 and 300 "because of the economic crisis," he said.

Oliver said 800 employees will receive pink slips over the next two weeks, with the remainder notified in August.

As part of the restructuring, the Wichita, Kansas-based company will close a plant in Bend, Oregon.

Oliver did not indicate the cost of cutting the jobs or the savings expected.

Parent firm Textron, based in Providence, Rhode Island, said in late April that the cost of restructuring and job cuts would rise to 75 million dollars from 40 million.

The US industrial conglomerate, which also owns Bell Helicopter and has a wide range of businesses in the defense and intelligence, industrial and financial sectors, had announced or already eliminated 8,300 jobs in a total workforce of 43,000, as of April 29.

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