GE Aircraft Engine Unit to Cut 3,900 : Layoffs: The Ohio-based subsidiary cites downturn in commercial and defense aviation.

General Electric Co.’s aircraft engines unit said Friday that it will lay off 3,900 workers, or about 12% of its 33,000-member work force, because of cuts in defense spending and fewer orders from commercial airlines.

GE Aircraft Engines said its commercial customers had suffered unprecedented losses over the last three years and that engine and spare-part orders were down.

“Those difficulties and continually changing customer needs require these cost actions,” said Brian Rowe, president and chief executive of GE Aircraft.

The reductions will come “throughout the year” and are expected to include about 2,300 salaried employees and 1,600 hourly workers.

About 2,500 jobs will be cut at the division’s Evendale headquarters, another 700 at its plant in Lynn, Mass., and 700 more at smaller facilities in the United States.

GE Aircraft’s cutbacks come on the heels of others within the aerospace industry.

Boeing Co. plans to slash 28,000 jobs, and United Technologies Corp. said it may close one or two engine facilities at its Pratt & Whitney unit, where annual revenue is forecast to drop to $5.8 billion from $6.9 billion in 1992.

Also, Delta Air Lines Inc. said last week that it will defer $1.8 billion in aircraft spending and plans to cut staff by about 6% as part of a plan to regain profitability.

GE Aircraft said it plans to keep its competitive edge by increasing the speed of engine-development and order-to-delivery cycles.

“By taking these actions, we can provide the best value in our products and continue to fund key development programs critical to our future,” Rowe said.

The company said it will also work at improving inventory management, reducing organizational layers and consolidating plant and equipment.

Some jobs would be cut through attrition and voluntary job elimination programs, it said.

GE Aircraft said the workers will be eligible for a full range of benefits and outplacement assistance.