General Dynamics to Cut Jobs at Gulfstream

General Dynamics Corp. will eliminate as many as 551 jobs, or 6% of the work force, at its unit that makes Gulfstream business jets.

Layoffs will start Nov. 1 at the unit, which has a work force of 9,196, including contractor employees, the company said.

The layoffs come less than a week after General Dynamics Chief Executive Nicholas Chabraja told investors that the company was planning to “moderate” production of some Gulfstream models, which he had earlier said might increase.

Gulfstream will make eight fewer aircraft in 2002 because of the economic slowdown that hit commercial aviation after the Sept. 11 terrorist attacks.

Shares of Falls Church, Va.-based General Dynamics rose 91cents to $86 on the New York Stock Exchange. They have risen 28% over the last year.