Gulfstream is taking these measures in an effort to both stabilize its backlog of aircraft orders and level-load production over 2009 and 2010. This action will result in a workforce reduction of 1,200 workers, including approximately 550 contractor personnel.
"Despite the current challenges, we continue to believe that Gulfstream's backlog provides a solid foundation for the business in this tough market environment," says Nicholas D. Chabraja, chairman and chief executive officer of General Dynamics. "We regret the impact of these actions on our employees and their families, and are doing our best to minimize the number of workers effected.
"As a direct result of the action we have taken at Gulfstream, General Dynamics is updating its guidance with respect to earnings for 2009. We are lowering that guidance from the previously stated range of $6.70-$6.75 to a range of $6.00-$6.10," Chabraja continues.
Gulfstream Aerospace Corp. is a wholly owned subsidiary of General Dynamics. General Dynamics, headquartered in Falls Church, Va., employs approximately 92,300 people worldwide.