Published: Sun, November 11, 2018
Finance | By Loren Pratt

Bombardier to cut 5000 staff worldwide as part of latest redundancy programme

Bombardier to cut 5000 staff worldwide as part of latest redundancy programme

Bombardier in Derby said there were no indications yet that the job cuts would have a significant impact in the city.

Earlier on Thursday, Bombardier said it was selling its Q400 turboprop program to a unit of Longview Aviation Capital for $300 million and its business aircraft flight and training activities to CAE Inc for $645 million.

The Montreal-based plane and train maker announced the cuts early Thursday, saying they're created to "lean out and simplify" the company's corporate structure.

The Canadian train and aircraft manufacturer employs nearly 70,000 people, including 4,000 at Bombardier Aerospace in Northern Ireland and around 3,500 at eight United Kingdom sites in its transport division.

Bombardier's widely traded Class B shares plunged 13 per cent to $2.76 at 11:12 a.m. after sinking as much as 27 per cent for the biggest intraday decline since January 2015. However, the company did eke out a profit of $149 million United States an improvement on a 100 million loss in the same quarter previous year.

The decision to sell the Q Series line, Bellemare said, was made 'because we believe there is a better owner than us to keep this program going'.

On the back of the restructuring announcements, Bombardier also unveiled financial forecasts for 2019, with the company saying it's aiming for at least $18 billion revenue and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reaching as high as $1.8 billion U.S.

Michael Mulholland, GMB Regional Organsier, said: "GMB demands answers from Bombardier for our members in Northern Ireland".

Quebec Premier Francois Legault weighed in after speaking with company and union leaders, saying his economy minister has started calling Quebec aerospace companies that are on the hunt for skilled workers.

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

Curtis says "the writing's on the wall" and that a move is on the horizon, but that any future production site will "absolutely not" leave Canadian soil. Sales fell 5.1 per cent to US$3.64 billion, compared with the average estimate of US$3.87 billion.

Bombardier disclosed the cuts as part of its third-quarter earnings report.

The deals are expected to net the company $900 million.

CAE president Marc Parent said in a statement its purchase of Bombardier's flight training wing "represents a win-win for both companies, resulting in enhanced core focus".

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