Bombardier to axe 5,000 jobs
Bombardier announced Thursday it will shed five-thousand jobs company-wide and sell off two units.
It's part of chief executive Alain Bellemare's five-year plan to rein in costs, focus on rail and business jets and reduce the net long-term debt of nine-billion dollars.
A company spokesman says about 25-hundred Bombardier workers will be laid off in Quebec and 600 in Ontario, with the two-thousand cuts occurring overseas.
The company will sell its Q400 turboprop aircraft program to a subsidiary of Longview Aviation Capital Corp. for about 300-million US.
The Montreal-based company also announced the sale of its flight training business to CAE Inc. for about 645-million US.
The restructuring was announced alongside Bombardier's third-quarter earnings and is slated for completion within 18 months/
Bombardier says the savings should add up to 250-million annually.
The announcement comes after mass layoffs over the past three years, with about 14,500 positions cut around the world in the aerospace and railway divisions.
Dropping the Q400 will allow Bombardier to zero in on producing its Global series of long-range business jets, including the Global 7500, whose first aircraft is slated for delivery next month.
Bombardier shares tumbled by more than 20 per cent to $2.53 in mid-afternoon trading on the Toronto Stock Exchange due to concerns over cash flow.
Bombardier forecast 2019 revenue to increase by 10 per cent to at least 18-billion, powered by more deliveries of its Global 7500s.