Cessna recorded a loss of $21 million in the first half of 2010 on sales of $1.07 billion, down from a profit of $138 million on sales of $1.64 billion a year earlier.
It ended the quarter with a $3.7 billion order backlog, down $400 million from the end of the first quarter.
Robert Stallard, an analyst with RBC Capital Markets, said in a report to investors that downward adjustments to the production line should be expected because of the recent buildup of white tails -- or planes without customers -- at Cessna.
Business jet production may not make a meaningful recovery until 2012, he said.
"We think it is better to take action now versus oversupplying the market in the long run," Stallard said. "Aggressive cost actions and productivity improvement at the trough should help boost margins when volumes return."
The layoffs will come from the company's hourly and salaried workers.
-- Sept. 19--Machinists union members at Cessna Aircraft will head to work instead of the picket line Monday after they failed to get the votes required to strike...
-- Oct. 01--Cessna Aircraft's announcement last week that it will cut 700 jobs and adjust production rates has analysts wondering whether the company will be unprepared for the inevitable...
Move could shrink hourly workforce by 50 to 75 percent