Published: Sun, November 11, 2018
Markets | By Otis Pena

Aerospace giant Bombardier to cut 5,000 jobs worldwide

Aerospace giant Bombardier to cut 5,000 jobs worldwide

Bombardier CEO Alain Bellemare said the cuts and sales are necessary, and the company would continue to "streamline" its operations.

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

Bombardier said its plan to streamline its operations would involve the sale of about 900 Canadian dollars (687 million US dollars) of non-core assets.

"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 Montreal-based company manufactures roughly 28 to 30 Q400 aircraft annually at its Downsview property in Toronto, land that the company sold earlier this year to the Public Sector Pension Investment Board. Although most of the attention on Bombardier is on its jet planes, most of the money for the company comes from its rail transportation division.

Bombardier Chief Executive Officer (CEO) says the company is on track to meet turnaround goals Bombardier's revenue for the third quarter was $3.6 billion United States a drop of about five percent from the same period in 2017. The provincial government gave the company a lifeline about three years ago by agreeing to invest US$1 billion in the CSeries program. First, with the heavy aerospace investment phase successfully completed, Bombardier will right-size and redeploy its central aerospace engineering team.

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Letendre said Thursday's actions were part of the company's five-year turnaround plan to strengthen its finances.

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, Curtis said. The rest of the roughly 2,000 jobs cuts will come from other locations around the U.S.

In the third quarter, adjusted earnings rose to 4 cents a share, topping the 2 cent average of analyst estimates compiled by Bloomberg.

The changes come 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. Quarterly cash burn decelerated to US$370 million in the period.

The company sold its Q Series turboprop airliner business to Viking Air for $300 million and its business aircraft flight and technical training business to CAE for $645 million.

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