Triumph Taking Over Gulfstream Division Of Tulsa Spirit AeroSystems

A major Tulsa employer carves out part of its workforce and sends them to another company. Spirit AeroSystems announced that 500 employees will go off their payroll, but be offered jobs with Triumph - a company that's taking over a major contract from Spirit.

The jobs - and the work of building wing assemblies for Gulfstream jets - will stay in Tulsa for now, while the new company works to streamline the operation, which has been losing money.

The deal has Spirit paying Triumph $160 million to take over the operation in Tulsa.

Triumph also gets all of the manufacturing equipment.

The 501 union employees from the company have a choice of signing on with Triumph - or finding other work.

Jeffrey McRae, Triumph CFO: "We'll be offering employment to all of the existing workers in Tulsa associated directly with the Gulfstream program. Obviously they'll have a choice to make as to whether they stay with the programs and come to work for us."

Most of Spirit's Tulsa operation builds wings for two Gulfstream business jets. There's plenty of work: Gulfstream can't build the jets fast enough to meet demand from buyers.

12/9/2014 Related Story: Spirit AeroSystems Announces Sale Of Tulsa Gulfstream Operation

But despite $250 million dollars a year in revenue, the division was losing money. Triumph's executives believe they can turn that around in three years.

Jeffry Frisby, Triumph CEO: "We have grown familiar with the capable work force in Tulsa. We're excited to work with these talented employees to drive improvements and continue manufacturing the wing programs."

In addition to the work for Gulfstream, Spirit has more than 100 union employees building components for other aircraft manufacturers, such as Boeing.

Spirit's CEO Larry Lawson said, "As for the other Tulsa programs, we are taking a pause in the process to evaluate the remaining work....including exploring our options within the community and with other constituents who have approached us."

The sale will close by the end of the year; the transition in the workforce expected to happen the first of February.