Published: Sun, November 11, 2018
Money | By Armando Alvarado

Bombardier to Cut 5000 Jobs

Bombardier to Cut 5000 Jobs

CANADIAN aircraft manufacturer Bombardier has announced plans to cut 5,000 jobs across the company over the next 18 months.

Bombardier also announced it will sell its business aircraft flight and technical training unit to CAE, and will also sell its Q Series turboprop aircraft program to Longview Aviation Capital, for anticipated total proceeds of US$900 million.

For the quarter, Bombardier's revenues reached $3.6 billion, representing 3% organic growth year over year, from Transportation, Business Aircraft and Aerostructures, as the Company deconsolidated revenues from the C Series program following the closing of the Airbus partnership. In February 2017, the federal government said was providing $372.5 million in loans over a four-year horizon to "support thousands of good middle-class jobs".

This is a developing story and will be updated.

"This is very bad news, it sends a worrisome message about the future of the industry", Renaud Gagne, head of the Unifor labour union's Quebec branch, said in a statement.

The news came as it emerged that Bombardier plans to sell off its Q400 airliner programme to Canadian firm Viking Air Ltd along with the respective trademarks.

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The Canadian firm said 2,500 workers will go in Quebec and another 500 in Ontario.

It comes months after Bombardier completed the disposal of its loss-making CSeries jet program to Europe's Airbus, which renamed the aircraft A220. "On the CRJ, the focus is still on reducing cost and selling aircraft today". Company workers were frustrated by the lack of information, it added. Anthony Scilipotti, founder of Veritas Investment Research in Toronto said: "Bombardier is desperate and it's unfortunate that the unsuspecting taxpayer is shouldering the burden for management's bad decision making".

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

Excluding one-off and one-time items, Bombardier posted quarterly adjusted earnings of 4 cents a share, above the consensus of analysts who expected a gain of 2 cents. Analysts, on average, expected $3.87 billion revenue and a profit of two cents per share.

Curtis says the deal, which is slated to close in the second half of 2019, positions Longview to more than triple its annual revenue to $1 billion.

The agreement encompasses the entire Dash 8 program, including the 100, 200 and 300 series and the in-production Q400 program.

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