In the news...

July 29, 2013

Spirit AeroSystems announces 360 layoffs

Roxana Hegeman
Associated Press

Spirit AeroSystems is laying off about 360 salaried support and management employees at its Kansas and Oklahoma facilities, the Wichita-based aircraft parts maker announced July 25.

The company said that while it had a ìcost challenge to address, its core business is performing well at unprecedented production rate that is driving its revenue, earnings and cash. Spirit AeroSystems said it remains strong with a ìrobust backlogî of orders worth about $36 billion.

Today’s action is a strategic move to make the company more competitive in a cost-sensitive environment, and results from an ongoing workforce assessment designed to reduce overhead costs, increase efficiency and drive improved performance,î the company said in a news release.

The company declined to break down the layoff numbers between the two affected facilities. Spirit AeroSystems employs 16,000 people globally, including 11,000 at its Wichita, Kansas, headquarters and 2,500 at its plant in Tulsa, Okla.

Spirit AeroSystems, which makes large sections of airplanes assembled by companies such as Boeing and Airbus, saw its first-quarter net income rise 10 percent as demand for commercial planes increased. Deliveries for commercial airplanes rose 9 percent from a year earlier and production is accelerating on several of the key passenger jets made by Boeing and Airbus.

The earnings growth came despite a pre-tax $15 million charge because of higher costs to make the wing for the Boeing 787.

While deliveries of finished 787s were halted for nearly the entire quarter because of malfunctioning batteries, production by Boeing and its suppliers continued. Spirit AeroSystems delivered sections for 17 of the 787s during the quarter, up from 15 during the fourth quarter of 2012.

Union and company officials said affected workers are being given a two-week paid notice. The employees immediately walked off company property after meeting with human resource representatives.

Spirit AeroSystems said it also is offering affected employees severance benefits and career transition services.

Layoffs are never our first response,î Spirit AeroSystems spokesman Ken Evans said in an email. ìWe have and continue to focus on keeping our company healthy and our team for the future intact. We are reducing overhead costs so the company can operate more efficiently.

The Society of Professional Engineering Employees in Aerospace, which represents two bargaining units of engineers and technical workers in Kansas, said its list of affected employees includes 47 engineers and 173 technical workers at the Wichita plant.

ìProduction is high, rates are high, so it is kind of hard to understand why they are laying off the salaried work force, said B.J. Moore, SPEEA contract administrator.

The union is considering litigation, Moore said, noting employees who sign the severance agreement don’t have any recall rights.

Larry Lawson, the company’s new president and CEO, said in May that Spirit AeroSystems would do a ìcomprehensive evaluationî of the development programs in four cities where sections of the 787 and the new Airbus A350 are made: Tulsa, Okla.; Wichita, Kansas; Kinston, N.C.; and St. Nazaire in France. At the time, Lawson said one of the company’s future goals would be to cut costs in the manufacturing of new planes.

Evans declined comment on published reports July 25 that GKN, an aerospace components group, may submit a $5 billion cash and shares bid for Spirit AeroSystems. GKN also declined comment in an email.

Evans said speculation about such a merger would likely be ìa topic of discussionî during the next earnings call, which is expected to be scheduled sometime during the first week of August.




All of this week's top headlines to your email every Friday.


 
 

 

Headlines December 19, 2014

News: SpaceX’s attempt to land rocket on floating barge postponed - It’s set to be one of the most groundbreaking moments in humanity’s six decades of space exploration. Obama signs $1.1 trillion spending bill into law - President Obama signed the $1.1 trillion federal spending measure into law Dec. 16, officially ending any threat of a government...
 
 

News Briefs December 19, 2014

Trial set for ex-Navy engineer in military secrets case A former Navy civilian engineer is scheduled to stand trial next summer on charges of trying to steal aircraft carrier schematics. Media outlets report that 35-year-old Mostafa Awwad of Yorktown, Va., pleaded not guilty Dec. 17 to two counts of attempted exportation of defense articles and...
 
 
Army photograph by C. Todd Lopez

Army to launch cruise missile-detecting aerostat at Aberdeen Proving Ground

Army photograph by C. Todd Lopez The Army plans to launch an aerostat, part of the “Joint Land Attack Cruise Missile Defense Elevated Netted Sensor,” in late December 2014. The JLENS aerostat will be tethered to the...
 

 
Air Force photograph by SrA. Jordan Castelan

AF delivers Iraqi F-16s for training in US

Air Force photograph by SrA. Jordan Castelan Iraqi air force captain Hama conducts preflight inspections while inside a new to service Iraqi F-16 Fighting Falcon Dec. 17, 2014, located at the nearby Tucson International Airport...
 
 
Air Force photograph by SSgt. Derek VanHorn

Short-notice: A new way to exercise

Air Force photograph by SSgt. Derek VanHorn Airmen from Kadena Air Base, Japan, prepare for an aeromedical evacuation exercise on a KC-135 Stratotanker Dec. 5, 2014, at Misawa Air Base, Japan. The operation was executed in supp...
 
 
Lockheed Martin photograph by Andy Wolfe

Japan, Australia to provide F-35 maintenance sites in Pacific region

Lockheed Martin photograph by Andy Wolfe An F-35C Lightning II joint strike fighter carrier variant prepares to launch from the aircraft carrier USS Nimitz in the Pacific Ocean, Nov. 6, 2014. Japan and Australia will be sharing...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>