Layoffs at Adam Aircraft

In need of long-term financing, Adam Aircraft Industries’ will layoff approximately 300 of its 800 employees at its facilities in Ogden, Utah and Englewood and Pueblo, Colo. The very light jet manufacturer is pulling back, watching its cash flow and streamlining production processes in the expectation...

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In need of long-term financing, Adam Aircraft Industries’ will layoff approximately 300 of its 800 employees at its facilities in Ogden, Utah and Englewood and Pueblo, Colo. The very light jet manufacturer is pulling back, watching its cash flow and streamlining production processes in the expectation that when it gets the long-term financing it is seeking, it can ramp up with faster production this summer.
At the same time, the company is suspending composite layup operations at its Ogden plant where 50 employees will be affected. The layoffs will be imposed through early summer and include about 70 are its headquarters facility at Englewood at Centennial Airport plant in Colorado as well as 90 in Pueblo.
Adam is seeking between $75 million and $150 million in long-term financing with the help of Citibank, according to Adam Aircraft President Duncan Koerbel, who called the situation temporary. The move comes on the heels of a glowing recitation of milestones reached last year. Related Story
“This is the right move for the long-term health of the company,” said Spokesperson Shelly Simi. “We need to have a close handle on current expenditures to allow time to seek financing. That includes a strategic reduction in force and moving the empennage and layup production to Centennial, requiring the suspension of these operations for the first half. Ogden is still slated to become our worldwide production headquarters while company headquarters will remain at Centennial.”
Unaffected is the A700 certification program which remains on schedule and completely staffed, she said. It is currently working on its FAA type certification slated for later this year and is aiming to get to a high rate of production by streamlining the production process by implementing the new Make Production Fly (MPF) program. Consequently, it has temporarily slowed the A500 piston twin production rate. The company has a backlog of 400 for the two aircraft and hopes to achieve a build rate of 12 to 15 per month for the A700 very light jet.