More Layoffs at Cessna, Bombardier Aerospace
This week, Cessna Aircraft and Bombardier Aerospace separately announced they are cutting business jet production rates this year, in addition to laying off more people. On Tuesday, Cessna chairman, CEO and president Jack Pelton sent an e-mail to employees explaining that because of continuing economic decline, “We have revised [downward] our production schedules for 2009 and 2010, and that means we will need to further reduce our workforce.” In late January, Cessna announced 2,000 job cuts and lowered its 2009 delivery estimate downward by 20 percent, to 375 aircraft. Since November, the company has handed pink slips to 4,600 workers. Pelton also said there will be a companywide two-week shutdown in July, instead of the usual one-week summer break. Meanwhile, Bombardier said today that it will deliver about 175 business jets this fiscal year, 25 percent fewer than the 225 it delivered in fiscal year 2009. In addition, it will further pare its aerospace workforce in the U.S., Canada, Mexico and Northern Ireland by 10 percent, or approximately 3,000 employees, by year-end. In early February, Bombardier said it was laying off 1,360 employees, and combined with today’s announcement this brings the total layoffs to about 4,360.