Canada's Bombardier to cut 5,000 jobs in restructuring

The logo of Bombardier is seen during the Latin American Business Aviation Conference & Exhibition fair at Congonhas Airport in Sao Paulo Brazil Aug. 14 2018

Bombardier cutting about 5,000 jobs as part of restructuring plan

The struggling plane and train maker has not said where the cuts will be made over the next 12 to 18 months, but the bulk are expected to go in Canada.

"When we have more information, we can assess how to minimize the number of laid-off employees", Legault told reporters.

About half the cuts, or 2,500 layoffs, were announced for the Canadian province of Quebec, the International Association of Machinists and Aerospace Workers said in a statement.

With the conclusion of those aircraft development programs, "we have to adjust and redeploy our engineering workforce, and this will have an impact on Wichita, of course", Letendre said.

The moves come at a time when the company is working through a five-year restructuring program through 2020 aimed at growing revenue and profit.

Technical training business to be sold to CAE Bombardier will also sell its business aircraft flight and technical training business, run out of Montreal, Quebec City, and Dallas Texas to another prominent Montreal-based multinational CAE.

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The company will only be able to attain its target of breaking even on a cash-flow basis this year by including the proceeds from a US$635 million land sale in Toronto. "We understand that", he added, pledging continued support for the aerospace sector. 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".

On a conference call Thursday with analysts, Bombardier CEO Alain Bellemare also acknowledged the company is "exploring strategic options" for its Canadair regional jet program, where he said the company is losing money.

The company further predicts revenues of around $16.5bn for the full year and reported $3.6bn in revenue in the last quarter.

In the third quarter, adjusted earnings rose to 4 cents a share, topping the 2 cent average of analyst estimates compiled by Bloomberg. Analysts, on average, expected US$3.87 billion in revenue and a profit of two cents per share.

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

Longview Aviation, the parent company to Viking Air Ltd., said once it completes its deal with Bombardier it will become North America's largest commercial turboprop aircraft manufacturer.

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