Textron Cutting 750 Aviation Jobs Following Beechcraft TakeoverJulie Johnsson
Textron Inc. told workers today that it’s eliminating 750 jobs as it melds assets gained from its $1.4 billion Beechcraft Corp. acquisition with its Cessna line of propeller-driven aircraft.
After completing the takeover of Beechcraft on March 14, the Providence, Rhode Island-based company “identified redundancies” in the units that have been combined to form Textron Aviation, Jim Walters, senior vice president for human resources and communications, told Textron workers in a letter.
The layoffs will affect “all areas of the Beechcraft and Cessna businesses, including salaried and hourly employees,” Walters said.
Textron Chairman and Chief Executive Officer Scott Donnelly told analysts in December that he expected the Beechcraft acquisition to yield annual cost-savings of about $65 million in the first year and as much as $85 million in subsequent years.
Beechcraft’s twin-engine King Air models complement a Cessna lineup that ranges from two-seaters to the Caravan turboprop. That market segment is less competitive than the one for private jets, where Cessna has struggled because it doesn’t sell the large, long-range plane favored by corporate buyers.