Textron to lay off 875 staff
PUBLISHED: 16:37 13 January 2020 | UPDATED: 16:37 13 January 2020
Textron, the parent company of Cessna, Hawker and Beechcraft, has announced that it will lay off 875 employees as part of a restructuring plan, the portal AVweb reports
While no specific details were given, a filing to the SEC (Securities and Exchange Commission) outlined the restructuring plan but focussed the layoffs in the aviation division.
The filing noted that 'the headcount reductions are primarily related to engineering positions, reflecting completion of the Longitude certification activities and reduced requirements for ongoing development programs'.
The Longitude is the latest development in the Cessna Citation family. Carrying up to twelve passengers and with a range up to 3,500nm, it received FAA certification in September 2019.
From an all time high of $72.30, Textron's shares had dropped to a low of $42.77 in August 2019.
The SEC filing noted: 'Severance and related costs are estimated to be in the range of $40 million to $45 million, with a total headcount reduction of approximately 875 positions', and that contract termination and other costs will be between $10 million and $15 million, including 'facility closure costs'.