As Many as 1000 Could Go Home

Gulfstream Aerospace announced Monday that it is having a serious look at its workforce and labor demands, and has concluded that perhaps as many as 1000 employees, plus many independent contractors, could be off the payroll within the next 12 months. The ultimate decisions will be market-driven; and the next few months hold the key.

A company press release said, "This review comes as the company adjusts production rates to the market decline resulting from the continuing downturn in the worldwide economy. Possible military action in the Middle East and iunrest in the Asia Pacific area have exacerbated this downturn."

Bill Boisture (right), president of Gulfstream, said, "We have confidence in our markets in the long run, and are well-positioned in both the business aviation and government/special mission sectors. We recently announced a broader product line to address a greater percentage of the available market. This strategic product line expansion was accomplished while adhering to our long-term accounting practice of expensing research and delelopment costs as they are incurred. Our competitive actions, continuous improvement programs and cost management enhance out ability to navigate efficiently through the cyclical downturn.

"We are taking these actions to retain our strong leadership position, protect the integrity of our brand and adjust our resources to build only those aircraft that we project the market can absorb," he concluded.

Gulfstream, a wholly-owned subsidiary of General Dynamics, currently employs roughly 7400, at seven major locations.

FMI: www.gulfstream.com