News Release
GULFSTREAM REVIEWING WORKFORCE LEVELS FOR PLANNED REDUCTIONS
Company-wide Review Will Include Employees and Independent Contractors
SAVANNAH, Ga., March 17, 2003 -Gulfstream Aerospace, a wholly owned subsidiary of General Dynamics (NYSE:GD), announced today that it is reviewing its workforce levels across the company. Reductions could total as many as 1000 employees plus independent contractors during the next 12 months. Business aircraft market conditions and product demand will determine the extent and timing.
This review comes as the company adjusts production rates to the market decline resulting from the continuing downturn in the worldwide economy. Possible military action in the Middle East and unrest in the Asia Pacific area have exacerbated this downturn.
"We have confidence in our markets in the long run, and are well positioned in both the business aviation and government/special mission sectors," said Bill Boisture, president of Gulfstream. "We recently announced a broader product line to address a greater percentage of the available market. This strategic product line expansion was accomplished while adhering to our long-term accounting practice of expensing research and development costs as they are incurred. Our competitive actions, continuous improvement programs and cost management enhance our ability to navigate efficiently through the cyclical economic downturn," he said.
"We are taking these actions to retain our strong leadership position, protect the integrity of our brand and adjust our resources to build only those aircraft that we project the market can absorb."
NOTE TO EDITOR
Gulfstream Aerospace Corporation, a wholly owned subsidiary of General Dynamics (NYSE: GD), designs, develops, manufactures, markets, services and supports the world's most technologically advanced business jet aircraft. Gulfstream has produced more than 1,300 aircraft for customers around the world since 1958. To meet the diverse transportation needs of the future, Gulfstream offers a comprehensive fleet of aircraft, comprising the mid-cabin, high-speed Gulfstream G100™; the wide-cabin, high-speed Gulfstream G150™; the large-cabin, mid-range Gulfstream G200™; the large-cabin, mid-range Gulfstream G300™; the large-cabin, long-range Gulfstream G400™; the large-cabin, ultra-long-range Gulfstream G500™ and the large-cabin, ultra-long-range Gulfstream G550™. Gulfstream also offers aircraft ownership services via Gulfstream Financial Services Division and Gulfstream Pre-Owned Aircraft Sales®. The company employs more than 7,400 people at seven major locations. We invite you to visit our Web site for more information and photos of Gulfstream aircraft at www.gulfstream.com.
General Dynamics, headquartered in Falls Church, Va., employs approximately 54,000 people worldwide and had 2002 revenues of $13.8 billion. The company has leading market positions in land and amphibious combat systems, mission-critical information systems and technologies, shipbuilding and marine systems, and business aviation. More information about the company can be found on the World Wide Web at www.generaldynamics.com.
