Aircraft maker Cessna will cut jobs after its parent company Textron (TXT) said new airplane orders were less than previously expected.

Textron said today that it will reduce headcount at Cessna while cutting its 2010 forecast for free cash flow from operations to $400 million from as much as $550 million. The company didn't specify how many jobs would be cut, but Cessna will fire about 700 people in Kansas, the Associated Press reported, citing an email Cessna CEO Jack Pelton sent to workers.

Textron said in July that Cessna revenue for the three months ended July 3 fell 27% from a year earlier to $635 million while the division's operating profit plunged to $3 million from $48 million a year earlier. Cessna accounts for about one-quarter of Textron's revenue.

Cessna has cut about half of the more than 12,000 people it employed at its Wichita, Kan., plant in 2008, the wire service said, citing Cessna spokesman Doug Oliver. Textron didn't immediately respond to a request for comment today.

Increase your money and finance knowledge from home

Asset Allocation

Learn the most important step in structuring an investment portfolio.

View Course »

What is Short Selling?

Make a profit when stocks prices fall.

View Course »

Add a Comment

*0 / 3000 Character Maximum

1 Comment

Filter by:

Will this industry ever recover?? My son has a business maintaining corporate jets but in the last two years it has all but dissapeared.

September 22 2010 at 11:02 PM Report abuse rate up rate down Reply