Answers to questions about Spirit layoffs

10/09/2013 2:53 PM

08/08/2014 10:18 AM

Spirit AeroSystems provided this information regarding Thursday’s layoffs.

Q. When is the workforce reduction happening?

A. Employees are being notified July 25.

Q. How many employees are being separated from the company?

A. Approximately 360 salaried support and management employees are being notified in Kansas and Oklahoma.

Q. Is this a layoff?

A. Yes

Q. Will there be other layoff announcements this year?

A. We have no other announcement to make at this time. However, this action is part of an ongoing, rigorous process to align our workforce with the needs of our customers and programs, and drive improved company performance. Decisions affecting our workforce are made based on program needs and our ability to bring more value to our aerospace design/build capabilities.

Q. Why are employees being exited immediately?

A. One of our key principles in this process is to ensure employees are treated with dignity and respect. By exiting the employees the same day, the affected employees can focus on their transition and begin finding new jobs without juggling work responsibilities. The company is offering affected employees severance benefits and career transition services.

Q. What’s the primary reason for this layoff?

A. The affected employees are being notified following a workforce assessment designed to reduce overhead costs so the company can operate more efficiently. This reduction in force is part of an ongoing, rigorous process to align our workforce with the needs of our customers and programs, and drive improved company performance.

Q. How many employees are being separated in Kansas/Oklahoma?

A. The company is not releasing further information about the breakdown of the approximately 360 salaried support and management employees who are being notified in Kansas and Oklahoma.

Q. How many are union represented/non-represented/management?

A. The company is not releasing further information about the breakdown of the approximately 360 salaried support and management employees who are being notified in Kansas and Oklahoma. We can say that employees in all of those groups were included in the layoffs.

Q. What are these people getting?

A. The company has offered each employee a severance package including severance benefits and career transition services. As a personnel matter, we are not going to discuss the details of those agreements out of respect for the employees affected.

Q. I thought your strategy was to avoid layoffs?

A. Layoffs are never our first response. We 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. This reduction in force is necessary to ensure we are positioned to bring even more value to our aerospace design/build capabilities.

Q. Is this because you are moving work overseas or to another site?

A. No.

Q. Does this signal the company is in financial trouble?

A: No. While we have a cost challenge to address, the core business is performing very well at unprecedented production rates, driving revenue, earnings and cash; and we have a strong backlog valued at about $36 billion.

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