Permanent for Some; Extended Summer Vacation for Others

Based on the uncertain worldwide economic conditions, Cessna announced to their employees Thursday, an adjustment to the production schedules of the Caravan and Citation lines. The exact schedule is still in the process of being determined, but the projected 2003 Citation deliveries will be in the range of 180-195 aircraft.

Approximately 6,000 employees will be affected by the furlough.

Wednesday, Cessna parent Textron hinted that something was about to happen. In a press statement revising its jet forecast, it said, "Textron will be taking immediate, aggressive steps to help offset the impact to earnings from this reduction in business jet deliveries. Actions include cutbacks in discretionary spending across the enterprise, as well as furloughs and an additional permanent workforce reduction at Cessna. Other offsetting factors include higher volumes at Textron Systems and lower-than-budgeted insurance costs, interest expenses and corporate expenses."

What's happening:

To align the workforce with the new production schedule, Cessna will be implementing a seven-week furlough from June 2 through July 18, 2003, and an additional permanent workforce reduction in excess of 1,200 employees. Notices will be given to employees affected by the workforce reduction beginning March 31.

During the furlough, the company will continue to provide its usual level of service for Cessna customers. These functions where support will be necessary include Marketing, Service Centers, Spares Support, Aircraft Delivery and other critical support areas.

Cessna's official statement continued, "Even though these are difficult times, our first priority is to ensure Cessna's continued success in the long term. We have an outstanding team at Cessna, and we remain confident in the future of Cessna and the industry."

Cessna currently employs 9,200 in Wichita and 10,800 worldwide.

FMI: www.cessna.com