On Monday evening Diamond Aircraft Industries Canada President and CEO Peter Maurer made the startling announcement that the company was laying off “the majority” of its Canadian workforce, estimated at roughly 2,000 strong. The move, it said, was temporary pending what it called “restructuring.” It also said that it was suspending the D-Jet program “pending the securing of additional funding.” It gave no timetable for the re-hiring of the laid-off workers. Operations at the Austrian Diamond Aircraft are not affected, according to the release.
Maurer said, “We want to hire back as many employees as possible, as quickly as possible, but,” he continued, “the exact number and timing will be determined as we develop our restructuring plans in the coming weeks.”
Maurer blamed the decision to suspend production on “continuing low piston aircraft sales, especially in the North American market.” Maurer also cited the “significant burden of its cost intensive D-JET development program” for the decision.
In the release, Maurer did not say whether Diamond would seek bankruptcy protection, though the suggestion that it would seek to “restructure” the company would suggest that route. Diamond did not immediately return emails seeking further comment.
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