Erickson Air Crane Lays Off Workers

August 25, 2016 - Erickson Air Crane has laid off about 100 workers this quarter, according to news reports. An employee estimated as many as 60 workers would lose their jobs.

 

Founded in 1971 in Central Point, Ore., the company has had financial difficulties over the last few years. Reports that the company owes Wells Fargo $140 million, indicate 10% of Erickson’s 800 employees will be laid off, with a focus on management positions.

 

Erickson released second quarter financials earlier this month, reporting that revenue was down $16.2 million compared to second quarter 2015. “Our second quarter results were unsatisfactory. We were unable to secure material business wins in a timely manner and we were unable to reduce our costs fast enough to align with the level of revenue generation,” said Jeff Roberts, president and CEO.  

 

 

“Our backlog and pipeline did not convert to revenue quickly enough, which resulted in heightened focus on managing cash and liquidity. In light of these circumstances, we are making further reductions in general and administrative and support costs, and deferring non-critical capital expenditures into future periods, which are aimed at improving our liquidity position. These measures will provide the time needed for our cost and revenue initiatives to mature. In addition, we are making good progress with our advisory firm to address our immediate liquidity needs, as well as options with respect to our longer term capital structure and strategic alternatives,” he added.