Stratford helicopter manufacturer Sikorsky Aircraft Corp. said Tuesday it would lay off 1,400 of its workers, due to declining sales to offshore oil exploration projects.
The layoffs will include 180 workers in Connecticut, said Sikorsky spokesman Paul Jackson. The company has 8,000 employees in the state.
The cost cutting also will include closing down the firm’s Bridgeport facility and moving 450 employees there to the headquarters in Stratford. That move will not include any additional layoffs, Jackson said.
In addition to the 180 employees in Connecticut, the remainder of the 1,400 layoffs will hit Sikorsky workers in Pennsylvania and Poland. The layoffs are starting immediately and will continue for the next year. Other Sikorsky satellite facilities in Pennsylvania and Poland will close – much like the Bridgeport facility – to consolidate into larger hubs in those areas.
The cuts are because of declines in investments by oil companies in offshore oil exploration projects – basically, oil companies flying workers to offshore rigs via helicopter, along with other helicopter work – which has reduced production levels at Sikorsky facilities.
Sikorsky is benefiting from the state’s $400 million tax-credit agreement with parent United Technologies. The company is required to keep its Stratford location for five years, in exchange for $50 million in credits, according to the Connecticut Post.
Department of Community and Economic Development Commissioner Catherine Smith, who oversees the state’s deal with UTC, released a statement Tuesday evening:
“It is our understanding that none of the eliminations announced today are a result of the Bridgeport closure, as those jobs will be transferred to Stratford. The company has also advised us that it has begun discussions with its unions regarding the separations and will comply with all of its obligations, as applicable, and will work closely with the impacted employees to ease the transition. Under the terms of the historic agreement between the state and UTC, the company is incentivized to keep as many jobs as possible and make new strategic investments that will greatly benefit the Connecticut economy.”
