Bombardier says it will cut 5000 jobs

Share

Bombardier also said it was selling for $300 million its Q-400 program and de Haviland trademark to the parent of Viking Air, which bought Bombardier's aerial firefighting aircraft program a few years ago.

Bombardier said the jobs will be eliminated over the next 12 to 18 months and will save the company about $250 million a year by 2021.

The announcement came as Bombardier unveiled its third-quarter results, in which pre-tax profits doubled to $267m for the three months to September compared with the same period a year ago.

Bombardier shares closed at $2.41 Thursday, a nosedive of more than 24 per cent to its lowest price in more than a year - and its biggest one-day drop since February 2015 - due to concerns over cash flow. In total sales to CAE are $800 million and are expected to be finalized by the middle of next year. The company said in a guidance that it is targeting a growth of at least 10 percent in its revenues to raise the tune of 18 billion Canadian dollars in the fiscal year 2019.

"The next question for Bombardier is what happens with the CRJ line and what happens with the rest of the commercial business".

The GMB union, which represents Bombardier workers, said it was demanding answers from the company on behalf of its members. President and CEO Alain Bellemare said in a statement. "It was a huge shock when we found they turned around and sold it".

More news: Vietnam to host F1 race from 2020 in Hanoi
More news: China fault lines on display as top officials meet
More news: Paramount production set destroyed by a wildfire in Northern California

He offered similar sentiments Thursday. The companies argues that its shift of the C series to Airbus will allow it to focus on regional planes.

"The transportation side and business jets are clearly the central focus of Bombardier going forward", Moore said. Company workers were frustrated by the lack of information, it added.

Any future production site will "absolutely not" leave Canadian soil, he said.

"Of course this is very hard for the workers". Analysts, on average, expected US$3.87 billion in revenue and a profit of two cents per share.

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

Bombardier has reached definitive agreements for the sale of non-core assets and the monetisation of royalties, which is expected to generate approximately $900 million in net proceeds, increasing financial flexibility as the Company approaches the final - deleveraging - phase of its turnaround plan. He says Longview intends to maintain existing supply chains for the Q400 and Dash 8 series that stretch from China to Ireland.

Share