Includes 20 Percent Reduction In Management-Level Employees

Officials at Bell Helicopter announced Wednesday the company will lay off approximately 500 workers, representing about four percent of the Bell Helicopter workforce. The planned layoffs include a 20 percent reduction in the management-level staff.

Bell says the layoff was triggered by the US Department of Defense's recent termination of the ARH-70A helicopter development contract, including the impact of the loss of the planned production contract. As ANN reported, the DoD announced the end of the Armed Reconnaissance Helicopter program October 16.

In accordance with government regulations, Bell will provide pay and benefits to the affected employees for 60 days following the date of their layoff notice. Bell will also provide severance pay in accordance with standard company policy.

"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."

Employees affected by the layoff were notified Wednesday. Bell says it has made arrangements to provide each employee with post-employment support through the services of an outplacement firm and the Texas Workforce Commission.

FMI: www.bellhelicopter.com