Hawker Beechcraft Announces Layoffs

Wichita, Kansas-based Hawker Beechcraft’s CEO Bill Boisture announced pending job cuts that will affect the company’s Little Rock operations, although details are not fully known at this time.

In a letter to workers, Boisture said employees to be laid off will be given 60 days notice starting Nov. 11, 2011.

When Hawker Beechcraft last had a company-wide layoff in September 2010, there were roughly 600 workers in Little Rock. The company finishes out private jets at its operations at the Little Rock National Airport.

Boisture’s rationale for the job cuts were blamed on the world economy and long-term projections for a potential recovery.

“At present, the airplane markets in which we compete are showing little sign of growth, and the key indicators that could trigger such growth are stubbornly low,” Boisture wrote.  “We know there is pent up demand for our products, but major world regional economies are troubled:  Europe’s debt crisis continues, China’s growth is slowing, and the Arab Spring is running into a Fall of unrest in the Middle East.  The U.S. is experiencing a continuing recessionary climate while our elected leaders are adversely targeting our products and customers in their attempts to cope with budget shortfalls.  This combination of events is  continuing to erode buyer confidence and hence demand for our products.”

Boisture said that he did not see economic conditions improving in the near-term.

“It is my view that this condition, or some combination of it, will exist for quite some time in our Business and General Aviation sector,” he said. “The combination of these factors brings us to a decision to continue to resize and align our company to a market that is projected, for the next two years, to remain small relative to past markets and which projects modest growth rates beyond that time. The necessary reductions in force will affect all levels of our company.”

A company spokesperson said that specific numbers are not known at this time as Hawker continues to assess company needs. The layoffs are expected to “touch all levels” of the company.

The aerospace industry is Arkansas’ largest export industry and one of the largest sectors of employment in the manufacturing arena.