CESSNA MEMO TO STAFF WARNS OF CUTS
Continued pressure on financial performance could lead to job losses
CESSNA Aircraft's chairman and chief executive has sent a memo to employees saying the difficult economy could create pressure on the aircraft company, according to a report in the Wichita Eagle.
CEO Jack Pelton said in the memo sent last week that the full impact of the economy on Cessna in the short term is unclear, but there is continued pressure on financial performance. "We must recognise these are extraordinary times calling for extraordinary performance," Jack Pelton said in the memo. "This is not meant to panic anyone, only to keep you informed."
Cessna has seen a slow-down in its market, Pelton said. Some of the factors contributing to that slow-down are rising numbers of used aircraft on the global market, a decline in aircraft use and a slowing of sales in fractional ownership businesses.
Cessna also expects the credit crisis to affect customers' access to financing.
"For the short-term, we cannot ignore current economic realities," Pelton said.
Pelton also said Cessna will fill only "critical positions" the rest of the year and into 2009.
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Cessna employs 16,000 people, including 12,000 in Wichita. The company has plans to deliver 470 Citation business jets this year and more than 500 in 2009. It also has an order backlog of more than $15 billion.
In the past year, Cessna has hired 1,500 people as it plans to deliver 470 Citation business jets this year and more than 500 in 2009. It also has an order backlog of more than $15billion.