Bombardier announces more job cuts
October 21, 2016
Canada's Bombardier said Friday it planned to cut around 7,500 additional jobs by the end of 2018. The announcement came amid the aircraft and train manufacturer's efforts to bring down costs and boost productivity as part of a larger turnaround plan.
"The actions announced today will ensure we have the right cost structure, workforce and organization to compete and win in the future," CEO Alain Bellemare said in a statement.
Last year, the government of Quebec, where the company is headquartered, came to the rescue of Bombardier, providing it with $2.5 billion (2.3 billion euros) for a 49.5-percent stake in its C Series plane program and 30 percent of its rail unit.
Uncertain future
Delays in the C Series of fuel-efficient new aircraft have prevented Bombardier from snatching business from Airbus and Boeing, and drained the company of cash, pushing it into a deep restructuring effort.
Bombardier said most of the jobs that will be cut will be in the company's administration. Around 500 of the employees potentially affected work for rail arm Bombardier Transportation, which is headquartered in Berlin.
Its president, Laurent Troger, told the DPA news agency Friday that it had not yet been decided just how many positions would be lost at several German sites, including Berlin.
"We will visit our plants in Germany in the next six to eight weeks to conduct talks on the ground," Troger said.
The group expects cost savings of some $300 million by the end of 2018 from the job cuts. While slashing jobs in some segments, Bombardier said it was aiming to hire personnel in other sectors, particularly in engineering and in information technology, as it continues a digitization push.
hg/nz (dpa, AP)