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Pratt & Whitney Canada Latest To Announce Layoffs

Falling Bizjet Demand Translates To Job Losses For 1,000

Jet engine maker Pratt & Whitney Canada will lay off up to 1,000 workers, about 10 percent of its total workforce, due to the dropoff in orders for business jets, and the resulting fall in demand for its turbofans.

The Associated Press reports the layoffs will start a few months from now. "Many of our clients that manufacture business aircraft have reduced production levels and laid off people," said company spokesman Pierre Boisseau. "It has a direct impact on our operations at Pratt & Whitney Canada."

The enginemaker's announcement comes one day after Louis Chenevert, CEO of P&WC parent company United Technologies, told analysts sales of light turbofans for business aircraft have fallen due to slackening demand. That's a sharp contrast from this time last year, when Pratt & Whitney was on track to record a 5.5 percent increase in yearly operating profits.

Since that time, the economy has grown worse... and the very business aircraft that are P&WC's core market have been scapegoated as examples of corporate greed.

FMI: www.pwc.ca

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