Cites Defense Spending Reductions As Reason For Workforce Reduction

Bell Helicopter laid off 290 hourly and salaried workers Monday, saying it needs to cut its costs as a result of ongoing reductions in defense spending.

The layoffs, which affected mostly employees in the Fort Worth area, included some managers as well as about 85 contractors, according to a report in the Fort Worth Star-Telegram.

In a statement, Bell president and CEO Jim Garrison said "Sequestration is having an adverse impact on our industry, making the future for defense spending more uncertain than ever.”

Garrison cited an anticipated drop in the number of V-22 Osprey tilt-rotor aircraft as a principal reason for the move. The company has built more than 300 Ospreys, but that is expected to be cut in half despite a new Navy contract for 99 of the aircraft. “It reduces the build rate on our biggest program by nearly half, which will negatively affect the level of work in the Fort Worth manufacturing centers very soon," Garrison said. “And at the same time, commercial customers continue to demand increased value at more affordable prices. Price matters and every dollar counts when competing in the global marketplace.”

Bell spokesman Bill Schroeder told the paper that despite this current move, the company has seen a net growth in employees over the past four years. More than 1,300 jobs have been added in that time period, and Schroeder said Bell employs more than 7,000 in Tarrant County, TX.

FMI: www.bellhelicopter.com