Sikorsky to eliminate 600 jobs, bags $3.5 bn helicopter order from Turkey

Sikorsky Aircraft, the maker of Black Hawk helicopter, yesterday announced that it will eliminate 600 jobs, just a day after it received a massive $3.5 billion helicopter order from Turkey.

Sikorsky, a subsidiary of United Technologies Corp (UTC), will lay off 600 salaried and hourly employees, mainly from its Connecticut base, over the next several weeks.

Sikorsky has about 16,500 employees globally and around 8,200 at its base in Connecticut.

"Today, we notified employees that the company will undertake further restructuring amid the challenging and unstable economic conditions that continue to affect our industry," said Paul Jackson, a company spokesperson. "These decisions are always difficult to make, but necessary to protect the company's competitiveness and future.''

The lay-offs come after the company inked a $3.5 billion deal with Turkey to supply 109 helicopters.

With sales dropping by 8 per cent last year to $6.3 billion amid the US government scaling back on arms spending, reports have recently emerged that UTC is mulling options for Sikorsky.

Industry publication Defence News last month reported that UTC is mulling options, including a sale, spin off or forging a strategic merger for Sikorsky. (See: United Technologies mulls options for Sikorsky helicopter unit)

Founded in Long Island, New York by Russian immigrant aircraft designer Igor Sikorsky in 1925, Sikorsky is the leading manufacturer of military and commercial helicopters.

Sikorsky helicopters are used by all branches of the US armed forces, along with military services and commercial operators in 40 nations.

Core US military production programmes are based on the Sikorsky H-60 aircraft, the Black Hawk helicopter for the US Army and Seahawk helicopter for the US Navy.

Sikorsky also has been making helicopters for the US President since 1957.

Over the past five years, the Pentagon has awarded $18 billion for Sikorsky helicopters, parts and services, making the company the leading rotorcraft provider to the US defence.

Sikorsky has a joint venture in India with Tata Advanced Systems for producing S-92 helicopter cabins and more than 5,000 aerospace components at two manufacturing facilities in Hyderabad.

Sikorsky generated around 10 per cent of UTC's $62.6 billion overall sales in 2012.