INDIAN RIVER COUNTY - The indefinite suspension of the Piper Aircraft light-jet program, a program the company had hoped would take flight in 2014, has kicked off a three-part, paced employee layoff schedule.
The number of employees let go on Oct. 26 was not available by press time, but two more sets of layoffs are expected to be completed before the end of the year, bringing the total amount of personnel laid off, including contracted employees, to 205.
In a press release, Piper Aircraft administration said the industry and market was not ready to sustain the company's light-jet program, Piper Altaire.
"Following an evaluation of Altaire development and light jet forecasts, we determined the best course of action for the company going forward is to indefinitely suspend the program, preserving intellectual property and progress to date," said Simon Caldecott, Piper interim president and CEO.
"Unfortunately and regrettably, this will have serious consequences for many talented Piper employees and for our Piper Altaire customers."
Piper officials said it would increase the number of engineering personnel to a different area, turboprop and piston-powered product lines, so not all of the engineers on the Altaire project will be let go.
The layoffs will bring the number of regular employees to about 700 individuals, the press release said.
That employment level number could trigger the return of some incentive dollars given to Piper by the state and county, but information on the amounts and requirements was not available at press time.
Piper is working with Workforce Solutions, a nonprofit corporation on the Research Coast, to put together a job fair to help the laid off employees connect with other companies in the aviation and aerospace industries all around the world, said Jackie Carlon, company spokeswoman.
She said other companies in the industry have been responsive and are eager to come to the job fair and are looking for engineers. The exact date of the job fair was unavailable at press time, but is expected to occur during the week of Nov. 7.
The company's decision to halt all projects related to the Piper Altaire program was a result of the poor market and economic conditions, even though the program was on schedule, on budget and meeting performance targets, Piper officials said.
Planned development costs had risen above the point that were recoverable under foreseeable light jet market projections. The company will not release the budget for the Altaire development program or expenditures to date, but will refund the deposits of Altaire position holders, or they can be applied toward other new Piper airplanes, a press release said.
The third quarter performance numbers for the company are expected to be released the week of Nov. 14, said Ms. Carlon.
"It's certainly disappointing to the team, but our core business is strong and remained focused on that," Ms. Carlon said.
For more information, visit www.piper.com.
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