After years of explosive growth, AME Unmanned Systems is cutting about 20 percent of its workforce in response to cuts in the U.S. defence budget and changes in its contracts.
Founded in 1999 by two Cal Poly graduates in a garage and on a shoestring budget, AeroMech grew to employ about 100 people and occupy about 78,000 square feet of space on Venture Drive. The firm makes unmanned aerial systems that range from hand-launched planes to its flagship Fury 1500, which has a 14.3-foot wingspan.
In 2009, Alabama defense contractor ChandlerMay acquired a controlling stake in AeroMech. In April, the parent firm installed a new CEO and changed AeroMech’s name to AME Unmanned Air Systems.A ChandlerMay spokesman confirmed that the company has “executed a restructuring to account for some contract changes with the U.S. government” but declined to say how large the employee cutbacks would be.
But a person familiar with the company told the Business Times that the layoffs will affect about 20 percent of AeroMech’s workforce, cutting the headcount from 100 to roughly 80. This person also said the affected employees would be eligible for rehiring if the firm wins new contracts.
Source: Pacific Coast Business Times