Strike Avoided But Bad News Continues For Cessna

It was posted before about the possible strike for Cessna, but that seems to be averted although the news does not get better.  It is reported the production line workers were required to accept the new contract.  AIN reports that after that strike was averted, the news was not better:

[Citation] will lay off 700 more employees. Parent company Textron today reported that it is “adjusting aircraft production schedules and reducing headcount at its Cessna business unit due to continued weakness in new aircraft orders.” According to Textron chairman and CEO Scott Donnelly, “We have not yet seen a discernible improvement in business jet order activity. Therefore, we are taking further production and restructuring actions at Cessna.”

They are continuing to remain a force in the business aviation space and have taken these steps to continue that process.

In a note sent to employees today, 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.

They will not be providing information related to their production changes for the year but we can hope this means they will be better positioned for 2011.

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