GDC Technics was forced to implement job cuts, and the company’s chief executive officer, Brad Foreman, explained that this is the direct result of Boeing’s sudden cancellation of its Air Force One contract. It was revealed that 223 workers are set to lose their jobs.
Job layoffs ahead at GDC
As per Fox Business, GDC Technics has been working on the Air Force One jets that Boeing contracted for interior design and construction when Boeing abruptly halted the works. As a result, most people working on the project would have to be dismissed.
The aviation company revealed through a statement that the job cuts are necessary due to the loss of a major contract. GDC Technics also forwarded a letter to the Texas Workforce Commission as the operations at its Fort Worth plant will now come to an end as the work for Boeing has also stopped already.
In addition, the firm is also shutting down its facility in San Antonio, where the interiors of the Air Force One are being done. With the news of job cuts, Boeing has not commented on this issue yet.
The GDC Technics and Boeing Air Force One contract started to have problems after the latter sued the former over alleged delay in delivery or works. Based on Boeing’s filing, GDC missed deadlines and reportedly ran into financial problems as well.
The Chicago-based planemaker said that it had incurred millions in damages because the works on Air Force One are important since the aircraft is for the U.S. president. However, the works have been jeopardized by the delays.
GDC countersued Boeing
Boeing sued GDC Technics, and as a response, it filed a countersuit. Reuters reported that GDC stated that Boeing was to be blamed for the delayed works on the Air Force One jets.
It alleged that the aircraft manufacturer’s mismanagement of the completion of the presidential planes obstructed the completion of the works. Boeing also failed to fulfill its contractual obligations to GDC that include its failure to pay for works done. Meanwhile, the aviation service firm is seeking a $20 million compensation in its lawsuit over the canceled contracts.


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