Bombardier to cut workforce by 7,000
Print Edition
CANADIAN aircraft and train maker Bombardier Inc said it would slash its workforce by about 7,000 over the next two years, while ramping up hiring to support production of its struggling CSeries commercial jet program.
The company said yesterday it had signed a letter of intent with Air Canada for up to 75 CS300 aircraft for US$3.8 billion, based on list price.
Montreal-based Bombardier now has 678 total orders and commitments for the CSeries, including 243 firm orders.
The company has been struggling to find buyers for the 100-150 seat CSeries jet, in to which it has sunk billions of dollars, due to fierce competition from Boeing Co and Airbus Group SE.
Bombardier's quarterly results missed analysts' expectations, and it also forecast lower-than-expected revenue for 2016.
The company expects to record US$250 million-US$300 million in restructuring charges in 2016 in connection with the layoffs. The company said it has about 64,000 employees.
The job cuts, hitting the company's aerostructures and engineering services and transport divisions, will be mostly in Canada and Europe.
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