By
Patrick Preston
Investigative, Political Reporter
Published: September 11, 2009
COLUMBUS, OH—More than 200 local NetJets Inc. employees were told Friday their positions were being eliminated.
NBC 4 reported with the FAST FACTS.
NetJets Inc. announced Friday it’s laying off about 5 percent of its total workforce.
NetJets spokesperson Ted Lowen said more than 200 Central Ohio employees were being notified Friday that their positions are being eliminated. Lowen would not give an exact number but said the total is less than 250 employees.
The layoffs will bring the company’s Central Ohio workforce down to approximately 1,800 workers.
The reduction hits 10 percent locally since the company is headquartered in Columbus.
NetJets Inc. said it took the cost-reduction action as a result of the severe economic conditions facing the aviation industry.
Lowen described the internal workforce reductions as across-the-board, with a greater number of administrative and marketing positions affected.
The reductions extend to the entire company, impacting 5 percent of the more than 7,000 NetJets employees worldwide.
While local municipalities have worked to offer tax incentives to help NetJets expand, Lowen said, “we’ve not taken any money that we don’t deserve,“ adding that the company will not need to return any funds after today’s layoffs.
Lowen said NetJets is “responding to the severe economic conditions impacting customers” who have reacted themselves by “not asking for NetJets services as much.”
The company had analyzed the decision for weeks after already working to reduce costs this year by putting off jet purchases and cancelling the delivery of other jets.
As for the timing of the announcement, Lowen said Sept. 11 is ”not the ideal day,” but the company felt it was better to announce the decision to eliminate jobs sooner rather than later.
NetJets is offering severance packages and outplacement services to affected employees.
NetJets, which is a Berkshire Hathaway company, is headquartered in Columbus, Ohio, with operations in the U.S. and Europe and an affiliation with the provider of the NetJets Middle East Program.