Hawker Beechcraft Gears Up for More Layoffs

AINalerts » November 8, 2011
November 8, 2011, 4:08 PM

In a letter sent to employees on Friday, Hawker Beechcraft chairman and CEO Bill Boisture warned of further layoffs, as expectations of a business aviation recovery in 2012 dim. Layoff notices to an unspecified number of workers will be sent out by week’s end. Since October 2008, Hawker Beechcraft has laid off more than 3,800 employees. “At present, the airplane markets in which we compete are showing little sign of growth, and the key indicators that could trigger such growth are stubbornly low,” Boisture said. This is eroding “buyer confidence and hence demand for our products,” he added. “It is my view that this condition, or some combination of it, will exist for quite some time in our business and general aviation sector.” Meanwhile, the company’s military aircraft sales face pressure under looming defense budget cuts. “The combination of these factors brings us to a decision to continue to resize and align our company to a market that is projected, for the next two years, to remain small relative to past markets,” Boisture said, “and which projects modest growth rates beyond that time.”

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