Cessna Aircraft plans furloughs in Wichita
Saying this continues to be a "difficult and tenuous time," Cessna Aircraft told employees Friday it plans furloughs to slow production on three aircraft lines and is delaying engineering work on its new Citation Columbus jet.
In an e-mail memo to employees, Chief Executive Jack Pelton said the targeted furloughs will affect its Citation CJ, Sovereign and Citation X production lines, all at the Wichita plant.
The timing and length of the furloughs vary, but the company offered no further details.
"As you are well aware, the global economy remains unstable and the international community faces tremendous challenges," Pelton wrote.
Cessna has announced 4,600 layoffs since the beginning of December. No additional layoffs were tied to Friday's action.
"While these steps have been painful for us all, they were necessary," Pelton wrote.
The furloughs were in addition to the layoffs and reduced work weeks meant to rapidly reduce production to meet 2009 production figures.
"Certain aircraft production lines are going to have to wind down a bit more quickly than would just be taken care of by reduced work weeks, and so we are going to have to furlough people associated with those production lines, said Cessna spokesman Doug Oliver.
Cessna had staffing in place to produce an anticipated 535 business jets, before the economic meltdown slashed aircraft orders. The company must now reduce that staffing to produce just 375 planes in 2009, Oliver said.
Friday's furloughs will not affect the company's Independence plant, where Cessna builds its smaller, more popular Mustang business jets. The company plans to build 130 Mustangs in 2009, up from 100 last year, Oliver said.
Pelton said the Citation Columbus jet also has been affected by the economy.
"The economic issues facing us today are also impacting the future, and circumstances have caused us to extend engineering development work on the Citation Columbus at least six months," he wrote.
Cessna began construction in October of a new facility in Wichita to build its Citation Columbus business jet. That expansion was then expected to bring more than 1,000 direct jobs with a payroll of $74 million.
In his memo, Pelton told employees the company would continue completion of flight training for the Citation CJ4 and planned to begin its deliveries as promised early next year.
Cessna is a unit of Providence, R.I.-based Textron Inc.
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