Cessna Lowering Citation Production
Just three days after union production-line workers at Cessna Aircraft were forced by default to accept a new contract (see article on page 10), the Wichita-based manufacturer announced on September 21 that it is again reducing Citation production and, as a result, will lay off 700 more employees. Parent company Textron cited “continued weakness in new aircraft orders” as the reason for the action. In a note to employees, Cessna chairman, CEO and president Jack Pelton said these production cuts will lower costs and keep the company competitive. “Our strategy is to defend and protect our current markets while investing in products and services to secure our future, but we can do this only if we succeed in restructuring our processes and reducing our costs,” he said. In January, Textron estimated that Cessna would deliver 225 Citations this year, but would not say what the “readjusted” production estimate will be.