Published: Fri, November 09, 2018
Economy | By

Aerospace giant Bombardier to cut 5000 jobs worldwide

Aerospace giant Bombardier to cut 5000 jobs worldwide

"The company is focusing on business aircraft, so that should be considered a positive for Wichita.The 5,000 job cuts come from streamlining the organization across the board", Letendre said.

Canadian aerospace and transportation manufacturer Bombardier on Thursday announced 5,000 global job cuts over the next year to 18 months in a bid to "streamline" the struggling firm.

Bombardier employs 70,000 people, including 4,000 at four locations in Northern Ireland, mainly in Belfast.

Bombardier says that 2,500 workers will be cut in the Canadian province of Quebec and 500 workers from the province of Ontario.

The company also announced the sale of its business aircraft training unit to CAE for $645 million.

The cuts will come mostly from its aerospace division with some from the firm's rail division.

The company on Thursday forecast 2019 revenue would grow by 10 percent to $18 billion or more, driven by a pickup in deliveries of its Global 7500 business jets.

Bombardier has struck a deal to sell its Q Series aircraft program and de Havilland trademark to a subsidiary of Longview Aviation Capital Corp. for about US$300 million.

"My government will make every effort to minimize the number of job losses and to help affected employees find a new job", he said on Twitter in French.

He said he hoped "to see more movement from suppliers to reduce costs" on its other regional aircraft line, the CRJ, noting that Bombardier continues to lose money on its manufacturing.

"We're continuing to improve our processes", he said.

The cuts are expected to lead to about $250 million (U.S.) in annualized savings by 2021.

He said Bombardier has 1,500 CRJs in operation around the world.

The announcement came as Bombardier unveiled its third-quarter results, in which pre-tax profits doubled to $267m for the three months to September compared with the same period past year.

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

The Canadian plane and train maker said it would only be able to meet its 2018 free cash flow estimate by using $635 million (484.88 million pounds) in proceeds from the sale of a Toronto plant earlier this year.

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