Wouters: Additional Cost-Containment and Layoffs Needed For 'The Long-Term'

Aero-News has confirmed that Cirrus Aircraft is undertaking additional measures designed to see it through the extended economic downturn plaguing the nation, and in particular, the aviation industry. Cirrus staff was informed earlier today that additional cutbacks and layoffs are in the pipeline.

CEO Brent Wouters has confirmed that Cirrus is restructuring a number of management and other positions to result in a reduction in force of about 85 jobs, while also moving out of the Cirrus North facility (which will save the company some $2M per year, alone). Wouters notes that while this will have an (as yet unquantifiable) effect on SF50 Vision jet development, that he remains fully committed to the program and emphasized same by stating, "If its my last dying breath, we will see this program through."

The move will put a lot of the jet engineering staff in close proximity to the production team, and some reductions will eliminate duplications in various positions that are not necessary for the moment.

Wouters told ANN that well over $40 Million in cost savings has been achieved over the last year as a result of the measures instituted after 2008's formerly stellar sales reports headed south. While June and July were "soft", August is reportedly trending upwards and rumors suggest that Cirrus is close to closing a number of anticipated fleet deals, one of which is reported to be a "considerable" purchase.

Regardless, Wouters notes that they are preparing for continued slow economic news but feels that the company is positioned well for a period of time when some economic recovery takes place and the aircraft sales scenario starts a legitimate recovery... "but until then, we can and will survive."

As to the rumors of doom and gloom that accompany announcements of such cutbacks and less than positive financial reports, Wouters is aware that the community "will talk."

"Let me make this clear, there are no plans for a filing.... we're a long long way from that... we just doing what we have to, for the long-haul, for the sake of the company and to be ready to step up when the market rebounds. Its tough out there, but we're in far better shape than most..."

FMI: www.cirrusaircraft.com