Bombardier cuts 5,000 jobs globally

Roman Schwartz
November 11, 2018

Bombardier is also selling training services to CAE for $645 million.

"We have set in motion the next round of actions necessary to unleash the full potential of the Bombardier portfolio", said chief executive Alain Bellemare.

The Montreal-based company also announced a restructuring to optimize production and management processes, which is expected to eliminate about 5,000 jobs and result in savings per year of about 250 million Canadian dollars by 2021.

"When we have more information, we can assess how to minimize the number of laid-off employees", Legault told reporters.

Bombardier union calls the moves unfortunate and distressing Simon Letendre a spokesperson for Bombardier, confirmed 500 jobs will be cut in Ontario.

Michael Mulholland, GMB regional organiser, said: "Bombardier jobs are crucial to Belfast's economy and GMB will fight tooth and nail to save them".

According to the press release, the changes comes as Bombardier reported a profit of US$149 million (or four cents per share) in its latest quarter, compared with a loss of US$100 million or four cents per share in the same quarter previous year.

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Bombardier manufactures about 28 to 30 Q400 aircraft annually at its Downsview property in Toronto, that the company sold earlier this year to the Public Sector Pension Investment Board.

Bombardier workers in Northern Ireland and the Midlands face uncertainty after the Canadian company announced 5,000 job cuts globally on Thursday. Revenues are targeted to grow by approximately 10% to $18 billion or more, as deliveries of the Global 7500 business jet accelerate.

On the back of the restructuring announcements, Bombardier also unveiled financial forecasts for 2019, with the company saying it's aiming for at least US$18 billion in revenue and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reaching as high as US$1.8 billion.

The decision to sell the Q Series line, Bellemare said, was made 'because we believe there is a better owner than us to keep this program going'.

The strong profit came despite a five percent drop in quarterly sales from the same period a year ago to $3.6 billion.

Longview Aviation, the parent company to Viking Air Ltd., said once it completes its deal with Bombardier it will become North America's largest commercial turboprop aircraft manufacturer. He says Longview intends to maintain existing supply chains for the Q400 and Dash 8 series that stretch from China to Ireland.

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