Bell to lay off 500 workers

BY ELIZABETH BASSETT

October 29, 2008

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Bell ARH

Bell Helicopter, a Textron Inc. company based in Fort Worth, has announced today that it will be laying off about 500 workers, who will be notified of their termination today.

The layoff represents about 4 percent of the Bell work force and a 20 percent reduction in management-level staff. The Department of Defense recently terminated the ARH-70A helicopter development contract, which triggered the staff cuts and caused a loss of the planned production contract.

Employees who are laid off will get 60 days’ worth of pay and benefits, in accordance with government regulations, in addition to severance pay that meets with the company’s policy. Each employee can also get post-employment support through an outplacement firm and the Texas Workforce Commission.

“With the loss of the ARH-70A program, we must make changes in our staffing and structure to reduce costs and ensure that our products remain competitive,” said Richard Millman, president and CEO of Bell Helicopter. “Staffing decisions are always difficult, especially in light of the global economic conditions. Our actions are intended to ensure that we retain the talent most needed for the projected business environment and treat every affected employee fairly and with respect and dignity.”

The ARH-70A, an armed reconnaissance helicopter for the U.S. Army, was developed for a contract started in 2005. That year, Bell was awarded a $211 million system development and demonstration contact by the Army to build four developmental helicopters. The new aircraft was intended to replace to Army’s fleet of Bell OH-58D Kiowa Warriors and fill a void created by the 2004 cancellation of the RAH-66 Comanche program.

The program was restructured in May 2007 as the Army upped the number of required aircraft in order to replace Army National Guard helicopters. In June of this year, Bell submitted its proposal for Low Rate Initial Production Lot 1 of the ARH-70A, and in July the Army notified Congress that the program had exceeded cost-growth limits of the Nunn-McCurdy Act. This violation triggered a mandatory Department of Defense review, and on Oct. 16 it notified Bell that the program would not be re-certified and would be terminated instead.

Contact Bassett at ebassett@bizpress.net

Bell Helicopter To Lay Off 5% Of Employees

North Texas-based Bell Helicopter will lay off about 5 percent of its work force this year, the company announced Saturday.

Officials could not give an exact number or date, but said the layoffs were needed for cost reductions and " to better align the organizational structure with strategies for future growth."

In a release, Richard Millman, President and CEO of Bell Helicopter, acknowledged it was difficult for the company to reduce their staff, "but the facts are that Bell Helicopter must undergo some changes in the short term to prepare for the long term future."

There are about 44,000 employees internationally.

"We must reduce operating costs to assure that our products will be competitive in the marketplace. We will do this by increasing our efficiency while reducing redundancies and flattening the organization."
The employees affected by the layoff are being notified, officials said, and added they will be offered assistance in locating other employment.