Piper Aircraft Plans Layoffs, Citing Weak Demand

Due to continuing weak global demand for general aviation aircraft, Piper Aircraft expects to lay off 15 to 20 percent of its more than 750 workers, the Vero Beach, Fla.-based aircraft manufacturer announced yesterday. “While the general aviation industry had been improving over the past several years, aircraft deliveries had begun to slow,” it said.

Piper Aircraft experienced a decline during the first quarter, partially due to reduced production numbers for M-class products in anticipation of new product announcements, namely the M350, M500 and M600. “However, second-quarter deliveries have continued to remain sluggish and have not bounced back to the pace experienced in previous years,” Piper noted.

“Piper Aircraft has experienced steady recovery since 2009; however, we are facing challenges and economic instability in several key regions of the world, including Asia, parts of Europe and Latin America,” said Piper president and CEO Simon Caldecott. “The team at Piper is committed to the business and as such must make the agonizing decision to adjust accordingly. We must better align production with current market demand.”

As a result of this slowdown, Piper is adjusting the production schedule downward for the second half and next year, which will require a workforce reduction. However, if Piper’s full-time workforce dips below 650 before December 2016 then it will have to repay some of the $3.3 million in economic incentives it received from the state of Florida.

Caldecott said that while the piston and turboprop markets have slowed, the company is optimistic that sales will recover. In the meantime, the engineering and flight-test development teams are focused on the development and certification of the M600, Piper’s newest addition to the single-engine turboprop market.