Canadian-based Bombardier Inc. said Friday it will cut 7,500 jobs, over 10 percent of its global workforce in the next two years.
It is the second time the aircraft, aerospace and train manufacturer has reduced jobs since CEO Alain Bellemare was hired in February 2015 with an order to restore profitability. A 10 percent reduction in workforce took place that month.
Cost overruns and a delay of nearly three years in the company's C Series aircraft program have led to restructuring charges of up to $275 million, beginning in the fourth quarter of 2016 and continuing through all of 2017, a Bombardier statement said. The narrow-body passenger plane is meant to compete with similar-sized planes from Boeing Co. and Airbus Group SE.
Bellemare said about two-thirds of employee reductions will occur in the company's train division, largely based in Europe, and about 2,000 jobs, or roughly one-quarter of the total, will occur in Canada, Bloomberg News reported, the majority in the province of Quebec. He added recurring savings of $300 million are expected by 2018.
(Ed Adamczyk - UPI)