Cessna Cuts Production and Staff

Wichita, Kan.-based Cessna Aircraft is adjusting its aircraft production schedules and laying off more than 700 employees. "We have not yet seen a discernible improvement in business jet order activity," said Scott Donnelly, chairman and CEO of Cessna parent company Textron Inc. "Therefore, we are taking further production and restructuring actions at Cessna."

In a letter to employees, meanwhile, Cessna CEO Jack Pelton reported that "the gains made in the first half of the year in the global economy have stalled, and Cessna's performance continues to mirror the lackluster economy. While cancellations have slowed, the recovery and growth we expected to see throughout the year have not materialized, and the timing of any recovery remains uncertain...We must continue to lower our cost structure to remain competitive."