Projo Biz Blog

Textron's Bell Helicopter unit said it will fire 500 employees, or 4 percent of its workforce, after the U.S. Defense Department canceled the contract to build the Army's Armed Reconnaissance Helicopter.

The layoffs include a 20 percent reduction in management- level staff "to reduce costs and ensure that our products remain competitive" after the loss of the ARH-70A program, Richard Millman, who leads the Fort Worth, Texas-based unit, said in an e-mailed statement today. Textron is based in Providence.

Bell beat Boeing Co. in 2005 to develop and build the first installment of what was to be a 512-helicopter program. The Pentagon terminated the $6.27 billion program Oct. 16, citing mushrooming costs and delays for the helicopter, which was to replace Bell's OH-58D Kiowa Warrior observation aircraft.

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