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April 2, 2009
Bombardier Inc. announced in its fourth-quarter financial report an additional 10 percent reduction in its global work force, meaning 470 layoffs in the United States, including Wichita.
“The unfortunate truth is that the vast majority (of the domestic cuts) will be in Wichita,” says Guy Hachey, president and COO of Bombardier Aerospace. “I would say that almost all of them will be in Wichita.”
The cuts will affect both unionized and nonunionized workers and management.
In all, Bombardier announced 3,000 layoffs, in addition to the 1,360 announced in February. Those cuts affected 350 workers in Wichita.
As for the timing of the cuts, Hachey points to the fact that 90 percent of the reductions announced in February have been carried out.
“We are going to be quite quick in these reductions,” he says.
In it’s fourth-quarter report, the company forecasts a 25 percent decrease in deliveries for 2009, resulting in the need to lower its production levels.
“There is no doubt that we are going through challenging times and our business environment is changing fast,” said Bombardier president and CEO Pierre Beaudoin. “There’s a need for prudent execution, clear priorities and decisive action in the current context. However, we believe we are well positioned to face this difficult economic environment with a strong balance sheet, high level of liquidity as well as a large and diversified backlog, both by product and geographies.”
The company’s report shows net income rose 42 percent to $309 million in the fourth quarter, up from $218 million a year earlier. Revenue rose to $5.4 billion from $5.3 billion.
Cessna Aircraft Co. announced Tuesday that it planned further reductions and a companywide shutdown in July. Those actions designed to bring them more in line with what is expected to be slowed production schedule in 2009 vice president of communications Bob Stangarone said. The number of jobs cut and the workers affected will be announced by the end of the month.
Cessna has already laid off 4,600 workers, including 4,000 in Wichita.
Patrick J. Hanrahan, president of the United Way of the Plains, has been working with city officials to open a laid-off worker center which he says is on schedule to open June 1.
“We were prepared that things could worse,” he says. “My experience the last two times I’ve been through this, both in the ’90s and after 9/11, is that when aircraft sales go down they go down for everyone. It’s going to be a tough year, no doubt about it.”
Hanrahan says his organization spent $1.3 million on a similar center after layoffs in the wake of the September 11 attacks in 2001, and he anticipates funding this time around will reach a similar level.
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