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Gulfstream cuts jobs and production goals

Gulfstream’s declining sales have prompted its parent company—General Dynamics—to cut production goals and lay-off 1,200 workers last week. Plus, the aircraft manufacturer will streamline another 1,500 jobs this upcoming summer.

While the lay-offs will affect all Gulfstream facilities, most of the streamlining will be concentrated on Savannah, which is home to a majority of the company’s work force.

“We continue to look at the situation day to day,” commented Robert Baugniet, Gulfstream spokesperson. “With the market so volatile, it’s extremely hard to forecast what might happen.”

Gulfstream is also planning to cut the Research and Development budget by 15 percent and is currently on freeze hiring for most specialized engineering positions.

“Business aviation historically has followed economic cycles,” said Ed Bolen, CEO of National Business Aviation Association (NBAA). “So, it’s not surprising that it’s contracting now as the economy has contracted.”

“Policymakers and opinion leaders need to understand that business aviation is an essential tool for many companies to be productive and efficient, which is especially critical in this economic climate,” mentioned Bolen.

“It also means jobs for more than 1.2 million people,” Bolen concluded.