Textron Inc (Textron) has announced that its plant in Montreal, Canada, which manufactures flight simulators is to suspend production until further notice, endangering approaching 2,000 jobs across a number of business units. The suspension of operations is as a result of the effect the coronavirus pandemic has had on the travel industry. Textron also anticipates fewer sales for its Cessna business jets and ground support equipment for the foreseeable future.
“There has been a substantial decline in demand and order cancellations for flight simulators in light of the expected long-term impact of the pandemic on the commercial air transportation business,” the company said in a filing.
Textron also said it would record pre-tax charges of US$110 million to US$130 million in the second quarter related to the restructuring. According to Reuters news agency, Textron will continue to produce flight simulators for other fixed-wing aircraft and rotorcraft at its Tampa, Florida, U.S. factory. Textron also manufactures Bell helicopters and anticipates 2020 cash outflow in the range of US$80 million to US$95 million. The expected job losses will amount to approximately 6 percent of Textron’s employees, having already furloughed some 7,000 U.S.-based workers in March.
