Less than two weeks after Charlie Johnson replaced Russ Meyer to take over the leadership of Cessna Aircraft, the Wichita airframe manufacturer announced major reductions in production rates and workforce. Based on “uncertain worldwide economic conditions,” Cessna told its employees on March 20 that projected Citation deliveries this year will fall to between 180 and 195 aircraft, compared with the 220 the company projected just a week earlier. Cessna delivered 305 Citations last year. Caravan production will also be cut back.
To align the workforce with the new production schedule, Cessna will implement a seven-week furlough from June 2 through July 18 that will affect 6,000 workers, and a permanent workforce reduction in excess of 1,200 employees. These reductions add to the layoff notices given to 2,125 workers over the past six months and 505 in 2001. To address customer support concerns, Cessna promised that “we will continue to provide our usual level of service for our customers.” Cessna currently employs 9,200 in Wichita.
