Aerospace giant Bombardier to cut 5000 jobs worldwide

Daniel Fowler
November 11, 2018

Chief executive Alain Bellemare said: 'We have set in motion the next round of actions necessary to unleash the full potential of the Bombardier portfolio'.

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

Bombardier Inc. spokesman Simon Letendre says the jobs will be eliminated over the next 12 to 18 months.

Bombardier said its plan to streamline its operations would involve the sale of about 900 Canadian dollars (687 million USA dollars) of non-core assets. The transactions with CAE will total $800 million in revenue for Bombardier and are expected to be finalized by mid-2019.

The fate of the aging CRJ regional jets has been unclear since the company announced in October 2017 that Airbus SE would acquire a majority 50.01 per cent stake in the C Series, effective July 1 of this year.

For the third quarter ended September 30, Bombardier reported $267 million in earnings before interest and taxation, compared with $133 million a year earlier, which were restated due to accounting changes.

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Bellemare was brought on board in 2015 to shore up the company that was in serious financial trouble with the CSeries program.

The Montreal-based firm has also agreed to sell its Q Series turbo-prop airliner program along with the de Havilland trademark to fellow Canadian aircraft manufacturer Viking Air for $300 million. First, with the heavy aerospace investment phase successfully completed, Bombardier will right-size and redeploy its central aerospace engineering team.

"The transportation side and business jets are clearly the central focus of Bombardier going forward", Moore said.

It hasn't specified where the job cuts will be made, but isn't ruling out cuts in the UK. Analyst Ferguson claims that the company is committed to streamlining its operations and expects even more asset sales that will turn the company into a shadow of its former self. Analysts, on average, expected US$3.87 billion in revenue and a profit of two cents per share.

In the third quarter, the commercial aircraft business recorded a loss of US$9 million before interest, taxes and special items.

Bombardier CTO Francois Caza will also lead a new Advanced Technology Office, or ATO, that will apply aviation technology to its train business.

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