Bombardier is planning a lay off another 7,500 workers worldwide and further streamline operations, as the once cash-strapped company continues its five-year turnaround plan, the company announced October 21. One-third of these cuts will affect its aerospace division, with the remainder expected to come from Bombardier’s transportation/rail unit. Some 5,500 of the affected jobs will be outside Canada, the company confirmed.
“After successfully de-risking our business last year, our focus has shifted to building a clear path to profitable earnings growth and cash generation. The actions announced today will ensure we have the right cost structure, workforce and organization to compete and win in the future,” said Bombardier president and CEO Alain Bellemare.
Bombardier plans to streamline administrative and non-production functions across the company. This includes “leveraging its worldwide footprint to create centers of excellence for design, engineering and manufacturing activities in both its aerospace and rail businesses,” Bombardier said.
However, the company added that some of the layoffs would be offset by “strategic” hiring to support the ramp-up for key programs, including the C Series and Global 7000, which is approaching first flight. The company also recently announced plans to hire across its business aircraft service centers.
The announcement comes in advance of Bombardier’s planned third-quarter earnings call on November 10. Bombardier expects to record between $225 million and $275 million in restructuring charges as a result of the changes beginning in the fourth quarter and continuing into 2017. It estimates, however, that the cost reductions will result in recurring savings of about $300 million by the end of 2018.
(culled from www.ainonline.com)
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