Following in the footsteps of many a troubled small aircraft manufacturer, Cirrus is laying off 100 of its 1,330 people, or eight percent, as part of an effort to increase efficiency and reduce costs. The cuts will impact 71 in Duluth and 29 at the company’s plant in Grand Forks.
“We’re dealing with some straight-forward realities,” President and Chief Operating Officer Brent Wouters told a Duluth newspaper. “We’re in a difficult economic environment that has impacted the aviation business. We’re not selling as many airplanes as we’d hoped to this year.”
Citing weak sales, the company will retain its current 14-aircraft-per-week production rate, shelving plans to increase production to 16 per week this year. Piston aircraft sales are down this year. Cirrus shipments dropped 10.8 percent in the first six months to 239 aircraft, compared to the year-ago period. See related story Shipments Continue at Record Levels in this issue
However, the company is continuing flight test and certification efforts for it Vision SJ50 sport jet which had its maiden flight in July with service entry some time in 2009. Related Story Wouters reported that 500 have been ordered,each with a $100,000 deposit, which has provided seed money to cover development costs.