BeechTalk - BT - Cessna Laying off 700 More...Tell them the recession is over

Username Protected · **Posted:** 22 Sep 2010, 15:53

Tell them the recession is over........

Quote:

Cessna Aircraft announced Tuesday it will cut another 700 jobs, saying it has not seen the growth and recovery that it expected this year. Cessna CEO Jack Pelton told workers in an e-mail that the company's performance mirrored the "lackluster economy."

The latest round of layoffs comes on top of 8,000 jobs Cessna has shed since late 2008 as it cut its work force by half, Cessna spokesman Doug Oliver said. Most of the layoffs have been at the firm's Wichita facilities, where 6,200 people now work compared to 12,400 in late 2008.

http://www.google.com/hostednews/ap/art ... wD9ICFNDO0

Username Protected · **Posted:** 22 Sep 2010, 16:11

The local newspaper reported a survey- "Is the recession over?"

Yes- 11%

No- 89%

Username Protected · **Posted:** 22 Sep 2010, 16:15

Anybody looking for a good deal on a house in Wichita?

This is sad. :sad:

Username Protected · **Posted:** 22 Sep 2010, 21:31

DEPRESSING TO ME, DEVASTATING TO THEM!!!!!!!!!!!
gary

Username Protected · **Posted:** 22 Sep 2010, 21:45

What the hell are you talking about? The recession ended in July of 2009. Don't you watch the networks? Geeze :beechslap:

Jobs, runaway debt, and the price of tea in China don't mean crap.

Username Protected · **Posted:** 23 Sep 2010, 10:01

I hear stories like this and it makes me wonder..... What do 700 people do there?

I just can't believe it takes all of these people to build the amount of airplanes they build.

Username Protected · **Posted:** 23 Sep 2010, 10:19

Jason,

They still have 6200 more! They also care nothing about raising their prices. In 2005, a fully outfitted 172SP with G1000 was around $210k. Now that plane is over $300k, but it does have Synthetic Vision now and the GFC 700. So you add in a small software upgrade, replace one inferior autopilot with a better one, and add on $90k! Good plan! A 50% increase!

Username Protected · **Posted:** 23 Sep 2010, 10:37

Username Protected wrote:

I hear stories like this and it makes me wonder..... What do 700 people do there?

I just can't believe it takes all of these people to build the amount of airplanes they build.

Cessna's revenues this year will be over 3 billion and at there peak two years ago were over 5 billion. They will build over 300 planes this year from the lowly Skycather to the 18 million Citation X. Looking at the Mustang in Dayton recently and I was surprised to hear that they sold nearly 400 of the Mustangs since they have been lauched just three years ago.

Gary

Username Protected · **Posted:** 23 Sep 2010, 10:42

Username Protected wrote:

Jason,

They still have 6200 more! They also care nothing about raising their prices. In 2005, a fully outfitted 172SP with G1000 was around $210k. Now that plane is over $300k, but it does have Synthetic Vision now and the GFC 700. So you add in a small software upgrade, replace one inferior autopilot with a better one, and add on $90k! Good plan! A 50% increase!

$300k for a 172? :bugeye:

Username Protected · **Posted:** 23 Sep 2010, 10:50

6200 employees? That's insane. I could run that place with the 700 they just fired.

Username Protected · **Posted:** 23 Sep 2010, 10:50

Username Protected wrote:

$300k for a 172? :bugeye:

Yeah, that's crazy.

A Bonanza is more than twice the airplane as that little 172 !

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Oh, wait... and it costs more than twice as much as that 172.. :bugeye:

Username Protected · **Posted:** 23 Sep 2010, 12:45

Username Protected wrote:

I could run that place with the 700 they just fired.

I seriously doubt that, considering the amount of effort that goes into the entire Cert. process of an entire airplane, but I double dog dare ya! ;-)

Username Protected · **Posted:** 23 Sep 2010, 12:49

Username Protected wrote:

6200 employees? That's insane. I could run that place with the 700 they just fired.

You probably could, if they weren't part of a labor union. At their apogee cessna employed something like 16,500 :bugeye:

But, to be fair it should be noted that established aircraft manufacturers like Beech and Cessna have a lot more to do than just build airplanes. It takes a whole lot of people in departments that have nothing to do with aircraft assembly.

And despite what some folks say, the managers at the OEMs tend to be top-notch professionals. They don't like to employ any more people than they need, but with any big company, there are unavoidable inefficiencies.