Saturday, September 20, 2008

Eclipse Aviation Announces Job Cuts


Company Reduces Work Force By 38 Percent

ALBUQUERQUE, N.M. -- Several employees of Albuquerque-based Eclipse Aviation told Action 7 News they lost their jobs Friday morning in a mass firing at the jet maker.
Eclipse Aviation said it will lay off about 38 percent of its employees in an effort to achieve financial stability.

A former employee, who asked to remain anonymous, described the mood Friday morning as somber and said the company had security officials at the doors. The former employee said workers showed up Friday morning, were separated into groups and made to wait.

"Just waited, half an hour, 45 minutes until they gave us the whammy," the employee said.

The former employee said workers were told the cuts were based on the skill set of each worker.

The Albuquerque-based company said the layoffs of 650 employees include temporary workers and people employed less than six months.

The company said in a released statement it intends to increase production back to previous levels next year. But the former employee said if their job opens back up they won't get asked back, but will have to re-apply.

The layoffs come less than a month after a management shakeup that saw the ouster of founder and former chief executive officer Vern Raburn.

The new CEO, Roel Pieper, said the layoffs are needed to take the Albuquerque manufacturer to the next level of growth.

"In my effort to take Eclipse Aviation to the next level of growth and sustainability, I am 100 percent focused on operational excellence and a plan to achieve it," said Pieper in Friday's statement. "Financial stability is critical for this company and unfortunately, a reduction in workforce was necessary to achieve it. I am confident this action will set the company on the path to profitability so that we can continue to lead the very light jet category."

A conference planned next week to re-evaluate production plans for the company already had some people in business with Eclipse nervous.

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