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Saturday, July 5, 2014

Hawker Beechcraft lays off another 150 workers

Layoffs aren’t the result of Chapter 11 bankruptcy filing, company says

By Molly McMillin
The Wichita Eagle

For the second time in a month, Hawker Beechcraft is cutting its workforce.

The company issued 60-day layoff notices Friday to 150 hourly and nonhourly employees in several areas of its organization, the company told employees in a memo.

The memo was signed by Hawker Beechcraft Inc. CEO Steve Miller and Hawker Beechcraft Corp. CEO Bill Boisture.

The layoffs are not the result of the company’s filing for Chapter 11 reorganization bankruptcy, according to the statement.

“The need for these reductions is driven by market conditions and the need to adjust production schedules, not by the filing itself,” the memo said.

“In operating our business, we must continue to be good stewards of our cash and balance our production rate with the challenging and rapidly changing environment that we continue to face.

"We initiate reductions in force to match product demand and implement furloughs as appropriate to ensure that our manufacturing operations are matched to material availability.”

Company officials declined further comment on Friday’s layoff notices.

After filing for bankruptcy on May 3, the company said in a statement the next day that it had requested and received approval from the federal bankruptcy court to continue to pay workers and vendors.

In April, the company issued layoff notices to 350 workers, mostly hourly workers, as it adjusted production.

The latest round brings the total number of job cuts at the plant to 781 people in Wichita so far this year, according to information from the Kansas Department of Labor.

It also takes employment in Wichita to 4,200 people.

Reach Molly McMillin at 316-269-6708 or mmcmillin@wichitaeagle.com.

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