After Canadian plane and train maker, Bombardier ran into trouble against a big bet to battle plane-making giants Boeing Co. and Airbus SE with a brand-new single-aisle jetliner, it has been under financial pressure for many years. Since 2015, the company has had to cut more than 15,000 jobs in its aerospace and rail divisions around the world. Now, as the struggling firm looks to sell off its aging turboprop line to "streamline" operations, it will also slash about 5,000 more jobs globally.
Yesterday, the Montreal-based company announced that it would sell its business aircraft-training activities to CAE Inc. for $645 Mn. Further, the firm has also agreed to sell its turboprop-aircraft programs and the “de Havilland” trademark to a unit of Longview Aviation Capital Corp., the parent of Canadian aircraft-maker Viking Air Ltd. for about $300 Mn.
In addition to the 5,000 jobs that will be cut, another seven per cent of reduction of its workforce will occur across the organization over the next 12 to 18 months. However, key aerospace engineering team members will be redeployed to its booming business jet segment.
Majority of these job cuts are said to be concentrated in the aerospace business and will affect 3,000 workers in Canada.
"We continue to make solid progress executing our turnaround plan," said Bombardier Chief Alain Bellemare. "We have set in motion the next round of actions necessary to unleash the full potential of the Bombardier portfolio," he added.
Currently, Bombardier has around 69,500 employees across countries. The Canada-based firm expects that these job cuts will result in an annualized savings of about $250 Mn by 2021.
Image Source: bbc.co.uk