Piper AIrcraft, headquartered in Vero Beach, FL, has announced the layoff of 60 employees as of Monday, September 27th. The layoffs will reduce the company's employee count from 890 to 830. The move mainly effects the manufacturing divisions of the company.
The layoffs come after a time of massive hiring by the company in support of production for its newest aircraft model, the PiperJet. In September of 2009, Piper had an employee base of 580 employees. After the layoffs, the company will still have 250 more employees than in the same period a year ago.
Development and production of the PiperJet is still proceeding and first deliveries are expected in the second quarter of 2013.
The layoffs are the result of lower than expected airplane sales. Initial estimates were for 200 sales in 2010 but have since been revised down to 159 aircraft for the year. This is still well ahead of the 2009 sales of only 90 aircraft. The increase over 2009 can most likely be attributed to the successful Light Sport Aircraft model Piper recently began delivering, the PiperSport, which starts at a retail price of only $119,900.
The layoff notice for Piper employees comes shortly after Cessna's announcement of the layoff of 700 employees across the company.
A copy of the letter sent to Piper employees is available through the AOPA here. The company is trying to bolster it's international presence and increase it's sales by establishing a presence in countries where general aviation is growing. Offices have been established in Southeast Asia, Europe and South America with airplane sales being made in each of those regions.
As the economy continues to struggle however, general aviation manufacturers like Piper will most likely have to continue looking at further cost cutting measures in the future if the industry continues it's slump.
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