More Layoffs Coming at Hawker Beechcraft
Just hours after taking part in a GAMA-organized “General Aviation Jobs For Arkansas Forum” yesterday in Little Rock, Hawker Beechcraft sent a memo to employees warning of yet more job cuts at the company, which is headquartered in Wichita but has a completions facility in Little Rock. “We continue to face significant economic challenges in our worldwide general and business aviation marketplace,” said Hawker Beechcraft chairman and CEO Bill Boisture in the memo. “Buyer confidence is low, financing more difficult, and in the U.S., which is our predominant market, business aircraft have been disparaged by our political leadership. These combined factors have significantly reduced demand for our products and recovery is difficult to forecast with certainty.” As a result, the aircraft manufacturer is planning “a reduction in force and changes to employee benefits,” all of which will be outlined in more detail next week. “We must take these necessary actions to ensure we stay financially strong and position Hawker Beechcraft for a successful and bright future,” Boisture wrote. During the second quarter, the company recorded a profit of $172.2 million versus $24.1 million in the same period last year. However, Hawker Beechcraft would have recorded a loss in the second quarter if not for a one-time $175 million paper gain from buying back company bonds at a discount.