The inability of Congress and the White House to reach a federal budget agreement and end the government shutdown has severely impacted and in some areas completely stopped Sikorsky’s ability to manufacture and support helicopters used by all branches of the United States military.
As a result of the government shutdown, we have no choice but to furlough approximately 2,000 employees across the enterprise effective Monday, October 7th, if a budget agreement is not reached and the government shutdown ended before then. If the shutdown continues through next week, we will have to furlough an additional 1,000 employees.
As we stated earlier this week, we could manage the impact of a shutdown for a short time, but would not be able to sustain production for any extended period without an adverse impact.
The production and delivery of Sikorsky helicopters for the Department of Defense cannot proceed without the help of our valued Defense Contract Management Agency (DCMA) partners who have been furloughed due to the government shutdown. DCMA personnel are a critical and required part of our U.S. Government aircraft and parts inspection, acceptance, and delivery processes.