Adam Lays Off 300
It seems the rumors rippling through the VLJ industry the past week were true and Adam Aircraft has shrunk operations by about 30 percent while it finds the money to finish certification of the A700 jet and gets ready to go into full production of the A500 piston twin. According to an Associated Press story, the company needs between $75 million and $150 million to achieve those goals. Adam closed its Ogden, Utah facility until at least this coming summer, laying off 50 and also consolidated its operations in Centennial, Colo. (180 jobs) and Pueblo, Colo. (80). Company President Duncan Koerbel said the adjustments are necessary to save money until the new money is found. "To provide for our future growth, we must be strategic in our focus by managing current cash expenditures to ensure adequate time to secure financing for the long term," he said. "We're off to a good start in this effort with assistance from our partner, Citibank, but we need to be able to provide them with sufficient time working with potential investors to secure long term financing."