Bombardier to cut 5000 jobs as part of new restructuring plan

Bombardier Is Cutting Thousands Of Jobs

Bombardier Is Cutting Thousands Of Jobs

Bombardier announced a major overhaul of its business on Thursday that includes the sale of more than $900 million (almost R13 billion) in assets and the loss of 5,000 jobs as part of its third-quarter earnings report.

Bombardier workers face uncertainty after the Canadian aerospace giant announced 5,000 job cuts around the world.

CAE is picking up the training business for $645 million, along with spending an additional $155 million for the monetization of royalties from the business.

The firm will also sell two of its "non-core" businesses, its Q Series aircraft for $900m and the de Havilland trademark, for $300m.

The company will lay off the employees over the next 12 to 18 months.

"With our heavy investment cycle now completed, we continue to make solid progress executing our turnaround plan", Bombardier president and CEO Alain Bellemare said in a statement.

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"With today's announcements we have set in motion the next round of actions necessary to unleash the full potential of the Bombardier portfolio".

Bombardier said the job cuts are part of "a new enterprise-wide productivity program to further streamline, lean out and simplify the Company".

According to the press release, the changes comes as Bombardier reported a profit of US$149 million (or four cents per share) in its latest quarter, compared with a loss of US$100 million or four cents per share in the same quarter past year.

On an adjusted basis, Bombardier said it earned four cents per share in the quarter compared with a break-even result in the third quarter of 2017, beating analyst expectations. The transactions with CAE will total $800 million in revenue for Bombardier and are expected to be finalized by mid-2019.

To make up the difference, the Canadian aircraft manufacturer had chose to give up control (50.01 per cent) of its subsidiary dedicated to the CSeries aircraft, now known as the A220, to European giant Airbus in exchange for using Airbus's sales and marketing heft to lift CSeries sales.

Mr Bellemare was brought in three years ago to shore up Bombardier, which was facing serious financial trouble with the C Series programme and had to be rescued by the Quebec government with a $1bn bailout.

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