Textron, the parent company of Cessna, said on Tuesday that it will further lower 2009 manufacturing production rates at Cessna, and Cessna CEO Jack Pelton confirmed in an e-mail to workers that that means more job cuts. "I've never seen any situation as dynamic as this," Pelton wrote, according to the Wichita Eagle. "Financing continues to be problematic for many customers," he said. "Their economic health may have stabilized, but their decision to take delivery of the jet they ordered two years ago now hinges on increased profitability which is still some time away." In addition to the staff reduction, details of which will be announced at the end of this month, the company will shut down for two weeks in July. Other staff may face short-term furloughs as production of some models is suspended pending an upturn in demand.
Cessna has already laid off 4,600 workers. The next round of cuts will affect workers in all departments and all pay levels, the company said.