June 12, 2009

More layoff notices are going out at Cessna. The planemakers is cutting 1,300 jobs.

800 notices will go out by next Friday.

The company then will go into a previously scheduled furlough
period from June 22 to July 17, and workers return 500 more will be
issued layoff notices.

The company also announced an additional three-week furlough
companywide on top of those moves.

A Cessna spokesman said the cuts put a number on the staff reduction announced earlier this month by Cessna CEO Jack Pelton. Pelton also warned of additional furloughs.

Cessna's Robert Stangarone says even though the recession might have hit bottom, the aircraft industry lags behind the economy by about eight quarters.

Before today's announcement, Cessna had laid off 6,900 workers since November, 2008.

The Associated Press contributed to this report

Letter to Cessna Employees;

Fellow Cessnans,

Last week, Jack sent a business update outlining the continued market softness in our industry and its impact on Cessna. We have further revised our business plan to meet the weaker demand of this business cycle. Production in 2009 will be lower than our previous forecasts and production in 2010 will be lower than in 2009. While we must remain focused on cost management, especially inventory reduction, we will continue to invest in our new products and services to maintain our industry leadership.

The purpose of this message is to provide you with the specifics related to the actions communicated in Jack’s June 4 email:

· We will need to reduce our workforce by approximately 1,300 employees:

o On June 19, 800 WARN notices will be distributed primarily to production employees.

o The remaining notices (approximately 500) will be issued to affected employees after the furlough, no later than Aug. 14.

o The Voluntary Layoff Program (VLP) will be offered.

· In addition to the previously announced four week companywide furlough, three more weeks of furlough will be required. This additional furlough will not affect employees associated with production. Further details will be distributed later today.

Thank you for your dedication, focus and sacrifice as we work our way through the challenges of this business cycle.