Bombardier cutting 5,000 jobs

11 November, 2018, 00:53 | Author: Eric Barnett
  • Bombardier cutting about 5,000 jobs as part of restructuring plan

Bombardier workers in Northern Ireland and the Midlands face uncertainty after the Canadian company announced 5,000 job cuts globally on Thursday.

The company also announced the sale of what it called a number of non-core assets.

Bombardier also said it was selling for $300 million its Q-400 program and de Haviland trademark to the parent of Viking Air, which bought Bombardier's aerial firefighting aircraft program a few years ago.

Montreal-based Bombardier Inc. (TSX:BBD.B) has announced that it is cutting 5,000 jobs and selling $900 million US worth of assets as part of its latest attempt to restructure its operations.

For the full year, Bombardier expects revenues of approximately $16.5bn (£12.6bn).

Net proceeds from the two sales are expected to bring in about $900 million.

The restructuring announcement came as the company reported net income of $167 million in the third quarter, compared with a loss of $11 million a year earlier.


The Canadian company said it is aiming to "streamline, lean out and simplify the company" as part of a restructuring initiative that aims to save 250 million Canadian dollars (£146 million). Most notably, the company sold control of its C-Series jet program to Airbus in a deal that closed on July 1 of this year.

About 2,500 Bombardier workers will be laid off in Quebec and 600 in Ontario. President and CEO Alain Bellemare said in a statement.

"With today's announcements we have set in motion the next round of actions necessary to unleash the full potential of the Bombardier portfolio".

Bombardier Chief Executive Officer (CEO) says the company is on track to meet turnaround goals Bombardier's revenue for the third quarter was $3.6 billion U.S. a drop of about five percent from the same period in 2017.

Karl Moore, an aviation expert at McGill University's Desautels Faculty of Management, said the layoffs and selloffs will allow Bombardier to shift away from regional jets and shrink its debt. The largest group will move to the private-plane operation "to ensure they have all the necessary capabilities for future business jet development programs", Bombardier said. He says Longview intends to maintain existing supply chains for the Q400 and Dash 8 series that stretch from China to Ireland.

The Q400 series is a "natural fit" for Longview Aviation Capital, chief executive David Curtis said in an interview.

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