Cirrus facing likely job cuts

For those not on Cirrus’ customer email list, here’s a message they delivered this afternoon. Willingness to communicate the bad as well as the good is a mark of maturity. Good work.

Perhaps just as significant is willingness to communicate “within the same news cycle.” The news broke this morning. The fact that CD got this info out within the same business day, to put the news in what it considers the proper perspective, is important.

This is a lesson politicians have absorbed (to a fault) over the last decade. In 1988, the Dukakis campaign would let a day or two pass between a criticism from GHW Bush and its own response. In 1992, the Clinton “war room” had a reply practically before the criticism had hit the wires. Think what you want about Clinton, responding to bad news quickly is indispensable in the modern TV-Internet-email news environment. Obviously it’s crucial to respond honestly too.

For what it’s worth, I’m a retired CPA having spent 80% of a working career with a major international accounting firm. I’ve seen many startup operations, and have also visited with the folks in Duluth while considering a purchase of an SR20. What they have accomplished to date has been both extraordinary and outstanding. But in any complex manufacturing environment where significant elements of both the manufacturing and the business processes must be “made up” as one goes along, there will be some bumps in the road. I’m not troubled by today’s announcement folks; based upon what we’ve seen re the performance over the past few years from Cirrus, they will work through this bump and wind up stronger for it. Patience is a virtue. BTW, lest you wonder, I have no financial ties whatsoever with Cirrus - rather, I am a guy who recognizes a good operation when I see it, and deeply admire and respect the success and strengths of the fine people at Cirrus.

Cheers all,

Pete

For those not on Cirrus’ customer email list, here’s a message they delivered this afternoon. Willingness to communicate the bad as well as the good is a mark of maturity. Good work.

Dear Cirrus Customer:

You may have noted in the media that Cirrus is undergoing a significant

internal restructuring to overcome some “growing pains.” I have attached a

copy of a release made to the media tonight just to keep you up to date.

The objective of this effort at is to reshape Cirrus into a strong,

self-sustaining production company and build the airplanes that we want to

deliver and, we hope, you want to fly.

Please feel free, as always, to call us at any time.

Sincerely,

Ian Bentley.

CIRRUS DESIGN RESTRUCTURING FOR GROWTH

DULUTH, MN, February 2nd, 2001 – Cirrus Design

Cirrus Design Corporation today notified employees of a short-term reduction in its workforce. The reduction is part of a plan to streamline production and improve process flow while integrating the newly FAA-certified SR22 into its production line. In the last 18 months, Cirrus has delivered 111 SR20 aircraft, with a backlog of 639 orders. Rapid growth over the past year-and-a-half increased production capacity, but continued growth will require process refinement and cost reduction.

Management’s goal is to stabilize production by the end of the first quarter at one-aircraft-per-day. “Over the last 18 months, we have grown tremendously and have accomplished a great deal. It is now time for us to capture the gains we have made in production and focus on improving efficiency,” stated Alan Klapmeier, Cirrus president and CEO.

The staffing changes affect 127 employees across the whole company. After the reduction employment will stand at 512. Cirrus officials anticipate a recall as production rates increase.

Cirrus Design produces the SR20 composite aircraft and its derivative model, the SR22. Cirrus Design Corporation is based in Duluth, Minnesota, with additional facilities in Grand Forks, ND, and Hibbing, MN. The company designs, manufactures and markets general aviation composite aircraft, incorporating advanced technologies that result in high levels of performance, safety and comfort.

Dear Cirrus Customer:

You may have noted in the media that Cirrus is undergoing a significant

internal restructuring to overcome some “growing pains.” I have attached a

copy of a release made to the media tonight just to keep you up to date.

The objective of this effort at is to reshape Cirrus into a strong,

self-sustaining production company and build the airplanes that we want to

deliver and, we hope, you want to fly.

Please feel free, as always, to call us at any time.

Sincerely,

Ian Bentley.

CIRRUS DESIGN RESTRUCTURING FOR GROWTH

DULUTH, MN, February 2nd, 2001 – Cirrus Design

Cirrus Design Corporation today notified employees of a short-term reduction in its workforce. The reduction is part of a plan to streamline production and improve process flow while integrating the newly FAA-certified SR22 into its production line. In the last 18 months, Cirrus has delivered 111 SR20 aircraft, with a backlog of 639 orders. Rapid growth over the past year-and-a-half increased production capacity, but continued growth will require process refinement and cost reduction.

Management’s goal is to stabilize production by the end of the first quarter at one-aircraft-per-day. “Over the last 18 months, we have grown tremendously and have accomplished a great deal. It is now time for us to capture the gains we have made in production and focus on improving efficiency,” stated Alan Klapmeier, Cirrus president and CEO.

The staffing changes affect 127 employees across the whole company. After the reduction employment will stand at 512. Cirrus officials anticipate a recall as production rates increase.

Cirrus Design produces the SR20 composite aircraft and its derivative model, the SR22. Cirrus Design Corporation is based in Duluth, Minnesota, with additional facilities in Grand Forks, ND, and Hibbing, MN. The company designs, manufactures and markets general aviation composite aircraft, incorporating advanced technologies that result in high levels of performance, safety and comfort.

Way to go CD!! Just the kind of responce I think most of us were looking for. Obviously they would not like to have had this problem, but hopefully they will come out of this for the better. I hope they continue to keep us in the loop. This airplane has been a dream for almost 2 years for me, it is the best GA aircraft avalible for less than 400k. Hopefully the folks in Duluth will have a short “break”, and airplanes will continued to be delivered. CD, keep us informed, with progress and delivery dates.

Using Clinton and “honesty” in the same paragraph! Come on.

Using Clinton and “honesty” in the same paragraph! Come on.

Thought that would get a rise!

Using Clinton and “honesty” in the same paragraph! Come on.

Thought that would get a rise!

Hmmm… next you’ll be wanting to use “Bush” and “elected” in the same paragraph :slight_smile: