Icon Aircraft, manufacturers of the A5 amphibious LSA, announced earlier this month that it would be downsizing its work force to match softening demand.
Over 100 of the revolutionary A5s have been built, but an increase in costs has seen a decrease in demand for the product, resulting in 250 people being cut from the employee list.
"For long-term success, we need to make tough decisions,” said Thomas Wieners, Icon President and Chief Operating Officer. “Icon is currently structured for higher volume production, but after producing more than 100 aircraft, we now have a very good understandings of costs.
"And while the Icon A5 is truly an exceptional plane, the necessary higher price lowers demand considerably and requires us to adjust the organisation size as a result.
“We are making it a priority to support all affected employees through this transition,” added Wieners. “And the remaining team is an incredibly strong group who will be focused squarely on our future.”
Icon recently received funding from investors, which the company says enables it to keep core functions albeit with reduced staff numbers. Under a revised business plan, ICON A5 production will continue at a lower rate with the ability to ramp up production again if demand increases.
"Our vision and commitment have not changed, and our adventure-seeking owners love that the A5 delivers an unparalleled flying experience,” said Wieners.
“Creating a new category is challenging, but rightsizing the organisation now is a necessary next step so that we can grow demand and continue to introduce even more people to this incredible plane.”