General Dynamics said on March 5 that, as a result of deterioration in its Gulfstream order backlog, particularly during the month of February, and continued weak demand, Gulfstream Aerospace has decided to cut large-cabin aircraft production and green-aircraft deliveries from a projected 94 to 73 in 2009. Gulfstream plans to reduce production of its mid-size aircraft from a projected 30 to 24 this year.
Gulfstream is taking these measures in an effort to stabilize its backlog of aircraft orders and even out production over the two-year period. A reduction-in-force of 1,200 workers, including about 550 contractor personnel, also will be necessary, the company said.
“Despite the current challenges, we continue to believe that Gulfstream’s backlog provides a solid foundation for the business in this tough market environment,” said Nicholas D. Chabraja, chairman and chief executive officer of General Dynamics. “We regret the impact of these actions on our employees and their families, and are doing our best to minimize the number of workers effected.”
Gulfstream Aerospace Corp. is a wholly owned subsidiary of General Dynamics, which employs some 92,300 people worldwide.
For information: www.generaldynamics.com.