United Technologies’ (UTC) subsidiary Sikorsky Aircraft is planning to cut 1,400 jobs in the next year due to a drop in demand for helicopters.
The company said that declining orders are largely due to a slump in global crude prices.
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Sikorsky communications director Paul Jackson said: "Sustained decreases in oil prices continue to drive significant declines in capital investments by oil companies in offshore oil exploration projects, impacting Sikorsky and resulting in reduced production levels.
"Additionally, Sikorsky continues to experience softness in demand for certain international military products."
The lay-offs will start immediately, affecting the company’s production facilities in Pennsylvania and Connecticut in the US, and Poland. Workers and the Teamsters union have received notification of the redundancies.
The company plans to consolidate some of its manufacturing operations and move into larger facilities.
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By GlobalDataSikorsky will cease operations at its facility in Bridgeport and relocate workers to Stratford plant in Connecticut, US.
UTC has been looking for potential buyers for its Sikorsky unit.
Media sources reported last month that Lockheed Martin, Boeing and Airbus are among those considering acquiring the helicopter maker.
The proposed sale will allow UTC to focus on its aerospace, aircraft engine and building services operations.
Sikorsky serves commercial operators and the US Government with VIP helicopters, as well as supplying Black Hawk military helicopters to various countries. The company generated revenues of $7.5bn last year.
Image: A Sikorsky Schweizer 333 rotorcraft. Photo: courtesy of FlugKerl2 / Wikipedia.
